21st Century Business Herald:
What were the structural features of total social financing (TSF) in 2021? What's your forecast for the TSF and credit increase in 2022? Thank you.
Ruan Jianhong:
I will answer your questions. In 2021, total new social financing reached 31.35 trillion yuan, a reduction of 3.44 trillion yuan from the 2020 level and an increase of 5.68 trillion yuan from the 2019 level. The figures reflect that finance still played a big role in supporting the real economy. By the end of 2021, total outstanding social financing had risen 10.3% year on year, which is consistent with the nominal GDP growth.
In terms of the TSF structure, the first feature is that loans from financial institutions to the real economy remained stable. In 2021, loans in yuan and foreign currencies to the real economy increased by 20.11 trillion yuan, roughly in line with the 2020 level and an increase of 3.36 trillion yuan from the 2019 level.
Second, bond financing returned to normal level and stock financing saw accelerated growth. In 2021, government bond financing reached 7.02 trillion yuan, a reduction of 1.31 trillion yuan from the 2020 level. This was because the government had issued one trillion yuan of special anti-pandemic bonds in 2020, while in 2021, the bond issuance returned to normal conditions. Bond financing by non-financial companies reached 3.29 trillion yuan, down by 1.09 trillion yuan from the 2020 level. Domestic stock financing by non-financial companies reached 1.24 trillion yuan, up by 343.4 billion yuan from the 2020 level.
Third, off-balance-sheet financing declined notably. In 2021, off-balance-sheet financing, including entrusted loans, trust loans, and undiscounted bankers' acceptances, declined by 2.67 trillion yuan, 1.35 trillion yuan more than 2020's decrement.
In 2022, the PBC will fully implement the principles of the Central Economic Work Conference and maintain a prudent monetary policy that is flexible and moderate. We will also maintain reasonable and ample liquidity, and ensure that the growth of TSF is basically in keeping with GDP growth in nominal terms. Thank you.
