China Banks Balance Sheet

Chinese banks extended CNY 990 billion in new yuan loans in December 2024, above CNY 580 billion in November which was the lowest since 2012 and above forecasts of CNY 850 billion. Credit demand surged in December as authorities implemented several stimulus measures, including increased bond issuance and enhanced overall credit support. However, the figure was slightly below CNY 1170 billion a year earlier. Meanwhile, money supply rose 7.3% year-on-year, above 7.1% in the previous month and in line with forecasts. Total social financing which is a broad measure of credit and liquidity in the economy as it includes off-balance sheet forms of financing such as initial public offerings, loans from trust companies and bond sales, rose to CNY 2860 billion, compared to CNY 2340 billion in November and forecasts of CNY 2000 billion. Considering full 2024, new yuan loans totaled CNY 18.09 trillion, below CNY 22.75 trillion in 2023, representing the first annual drop in 13 years.