China's M2 balance increased by 7.2% year-on-year at the end of September

China News Service, Beijing, October 14 (Reporter Liu Wenbu) Data released by the People's Bank of China on the 14th showed that at the end of September, the balance of broad money (M2) was 359.63 trillion yuan, a year-on-year increase of 7.2%. The balance of narrow currency (M1) was 116.76 trillion yuan, a year-on-year increase of 3.2%. The balance of currency (M0) in circulation was 15.02 trillion yuan, a year-on-year increase of 10.6%. Net cash injection in the first three quarters was 922.1 billion yuan.

Data released that day also showed that RMB loans increased by 11.52 trillion yuan in the first three quarters. In terms of sectors, loans to households decreased by 1.03 trillion yuan; loans to enterprises (institutions) increased by 12.55 trillion yuan; loans to non-banking financial institutions decreased by 586.5 billion yuan.

Wen Bin, chief economist of China Minsheng Bank, said that with the support of seasonal factors and policy efforts, financial data stabilized and improved in September, and the effects of credit easing are gradually emerging. The growth rate of M2 is above 7%, basically matching the nominal economic growth rate, and the expansion of total credit is not considered weak.

From the perspective of credit investment, Wang Qing, chief macro analyst of Oriental Jincheng, analyzed that the current banking system is conforming to the trend of economic transformation and promoting the flow of more credit resources to new driving forces such as technological innovation and green transformation. Since the beginning of this year, loans in the "five major articles" of finance have continued to maintain double-digit growth rates, with the proportion of new loans rising to more than 70%, and the credit supply structure has continued to improve.

In terms of interest rates, the weighted average interest rate of new corporate loans in September was slightly lower than 3%, about 0.2 percentage points lower than the same period last year; the weighted average interest rate of new personal housing loans was about 3.1%, basically the same as the same period last year. Wang Qing pointed out that loan interest rates continue to remain low, reflecting that the supply of credit funds is relatively abundant, which is continuing to help the real economy reduce costs and increase efficiency.