China Media Group: 

My question is about the newly added credit and social financing. What have been the changes in the general trends in financial data starting from this year? What are the structural features of the newly added credit and social financing increment? What are the expected changes in the field in the second half of this year? Thank you.

Ruan Jianhong:

I will answer your question. The data in the first half of this year showed that the current financial operations are stable on the whole, the financial aggregate grows steadily, the liquidity is reasonably ample, and the support for the real economy is further strengthened. In the first half of this year, new RMB loans registered 13.68 trillion yuan, 919.2 billion yuan more than the same period last year. An additional 21 trillion yuan of social financing was achieved, 3.2 trillion yuan more than the same period last year. 

Regarding the structure of social financing, there are three notable features. First, financial institutions are increasing their credit support for the real economy. In the first half of this year, RMB loans issued by financial institutions to the real economy increased by 13.58 trillion yuan, 632.9 billion yuan more than the same period last year. Second, the direct financing of enterprises grew steadily. Net enterprise bond financing and stock financing amounted to 1.95 trillion yuan and 502.8 billion yuan, respectively, 391.3 billion yuan and 7.3 billion yuan more than in the same period last year. Third, the financial system actively complied with fiscal policies, and the special-purpose bond financing of local governments increased remarkably. Net government bond financing stood at 4.65 trillion yuan, 2.2 trillion yuan more than the same period last year, with special-purpose bonds financing of local governments reaching 3.39 trillion yuan, 2.23 trillion yuan more than the same period last year. 

In terms of the loan structure, first, enterprises and public institutions are getting more support. In the first half of this year, RMB loans to enterprises and public institutions went up by 11.4 trillion yuan, 3.03 trillion yuan more than the same period of last year. Second, the growth of loans slowed in the household sector, indicating that the repeated resurgence of the epidemic in the first half of the year had impacted household consumption to some degree. Household loans increased by 2.18 trillion yuan, 2.39 trillion yuan less than the same period last year. Among these, the consumer and business loans grew by 646.8 billion yuan and 1.54 trillion yuan, respectively, 2.13 trillion yuan and 264.4 billion yuan less than the same period last year. 

Next, the PBC will employ various monetary policy tools in a timely and flexible manner to better play their dual roles of adjusting both the monetary aggregate and structure. It is expected that the credit supply and social financing scale will both maintain steady growth. Thank you.