City skyline in China

China Money March 2024

China: Money supply records lowest growth since September 2021 in March

In March, Chinese banks distributed CNY 3090 billion in new yuan loans, up from September’s 1450 billion figure but below market expectations. Money supply grew 8.3% in year-on-year terms in March, which was a deterioration from February’s 8.7% increase. The outturn marked the worst reading since September 2021. Meanwhile, the stock of total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—increased 8.7% in the month (February: 9.0% yoy). Slowing credit growth so far this year is likely partly the result of the central government’s push to restrain public debt.

On the reading, Nomura analysts said:

“Filtering out the shifting Chinese New Year effect, government bond issuance in the first three months of the year has been RMB469bn short of the level a year ago, reflecting Beijing’s highly disciplined fiscal stance so far this year. […] This latest underwhelming March credit data report lends further support to our view that markets may still need to be cautious about the near-term outlook and it is not yet the time for Beijing to be complacent.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest