Hey everyone! Exciting news from the Chinese mainland – May saw a major surge in credit growth, thanks to proactive fiscal policies and strong market momentum. New data reveals that in the first five months of 2025, new yuan-denominated loans reached an impressive 10.68 trillion yuan. This boost is setting the stage for more liquidity and opportunities! 🚀
Money supply is on the rise too. The broad measure M2, which tracks cash in circulation and deposits, jumped 7.9% year-on-year to 325.78 trillion yuan by the end of May. This indicates a refreshing wave of liquidity powering the economy, a trend that tech-savvy investors and entrepreneurs alike can appreciate. 📊
Meanwhile, total social financing reached 426.16 trillion yuan by May’s end — an 8.7% year-on-year increase. Experts like Dong Ximiao from Merchants Union Consumer Finance attribute much of this growth to an early, aggressive push in government bond issuances, with net financing topping 3.8 trillion yuan in the first quarter. Local government special bonds even hit a new monthly high, highlighting the strong fiscal drive behind these numbers. 💪
Looking closer, household loans increased by 572.4 billion yuan, while loans to enterprises surged by 9.8 trillion yuan, underscoring robust borrowing activity set to fuel both everyday consumption and business innovation. Even the M1 money supply, covering cash and demand deposits, grew by 2.3% year-on-year to reach 108.91 trillion yuan.
Overall, these figures suggest that proactive fiscal measures are bolstering market confidence and paving the way for economic resilience. Whether you're a tech enthusiast, budding entrepreneur, or just curious about the trends, these financial shifts in the Chinese mainland could have ripple effects across Southeast Asia and South Asia. Stay tuned for more updates and share your thoughts! 😊
Reference(s):
cgtn.com
