Speakers:
Mr. Xuan Changneng, deputy governor of the People's Bank of China (PBC)
Ms. Ruan Jianhong, spokesperson of the PBC and director general of the Statistics and Analysis Department of the PBC
Mr. Zou Lan, director general of the Monetary Policy Department of the PBC
Mr. Ma Jianyang, an official of the Financial Market Department of the PBC
Chairperson:
Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Jan. 13, 2023
Shou Xiaoli:
Ladies and gentlemen, good afternoon. Welcome to the second press conference held by the State Council Information Office (SCIO) this afternoon. We have invited Mr. Xuan Changneng, deputy governor of the People's Bank of China (PBC), to brief you on China's financial statistics in 2022 and take your questions. Also joining us today are Ms. Ruan Jianhong, spokesperson of the PBC and director general of the Statistics and Analysis Department of the PBC; Mr. Zou Lan, director general of the Monetary Policy Department of the PBC; and Mr. Ma Jianyang, an official of the Financial Market Department of the PBC.
Now, I will give the floor to Mr. Xuan Changneng.
Xuan Changneng:
Friends from the media, good afternoon. In 2022, faced with unexpected factors at home and abroad, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, the PBC firmly acted on the decisions and deployments of the CPC Central Committee and the State Council and the requirements of the Financial Stability and Development Committee under the State Council, stepped up the implementation of prudent monetary policies, adopted the policy package and follow-up policies for keeping the economy stable, took solid measures to serve the real economy, and made resolute contributions to maintaining a stable macroeconomic performance. On Jan. 10, the PBC released the Financial Statistics Report (2022). The data shows that China's financial system operated smoothly in 2022, and the financial sector provided stronger and higher-quality support for the real economy.
First, liquidity in the banking system maintained reasonably ample, and the growth in total credit became more stable. In 2022, the PBC lowered the required reserve ratio (RRR) twice, providing the real economy with more than 1 trillion yuan in long-term liquidity; turned in surplus profits of over 1.13 trillion yuan; and used various methods such as re-lending and rediscounting, medium-term lending facilities, and open market operations to release liquidity, thus creating a favorable liquidity environment for keeping the macroeconomic performance stable. Broad money supply (M2) increased by 11.8% year on year, 2.8 percentage points higher than that at the end of the previous year. RMB loans grew by 21.31 trillion yuan, surpassing the amount recorded in 2021 by 1.36 trillion yuan. Aggregate financing in the economy increased by 9.6% – 32.01 trillion yuan – year on year, which was 668.9 billion yuan more than that in the previous year.
Second, credit support for key fields and weak links of the real economy was strengthened. The credit structure was continuously improved. In 2022, the PBC introduced a range of targeted structural monetary policy tools for groups in difficulty and key fields, helping to keep the macroeconomic performance stable. The outstanding balance of loans to the manufacturing industry increased by 36.7% year on year, 25.6 percentage points higher than the growth rate of loans overall. The outstanding balance of loans to small- and medium-sized scientific and technological enterprises increased by 24.3% year on year, 13.2 percentage points higher than the growth rate of loans overall. The outstanding balance of loans to specialized and sophisticated enterprises that produce new and unique products increased by 24% year on year, 12.9 percentage points higher than the growth rate of loans overall. The outstading balance of inclusive loans to micro and small businesses increased by 23.8% year on year, 12.7 percentage points higher than the growth rate of loans overall. A total of 56.52 million micro and small businesses received the inclusive loans, a year-on-year increase of 26.8%. At the same time, the PBC guided policy and development banks to free up 739.9 billion yuan through policy and developmental financial instruments, and made full use of 800 billion yuan in new credit quotas to mainly support infrastructure development. By the end of 2022, the outstanding balance of medium- and long-term loans to the infrastructure sector increased by 13% year-on-year, 1.9 percentage points higher than the growth rate of loans overall.
Third, overall financing costs of the real economy dropped significantly. While major European and American economies raised interest rates sharply and swiftly, China's loan prime rate (LPR) reforms continued to deliver benefits. The one-year and five-year LPRs were lowered by 15 and 35 basis points, respectively, helping to reduce overall financing costs of the real economy. In 2022, the weighted average interest rate on newly issued corporate loans was 4.17%, 34 basis points lower than the previous year. Meanwhile, the PBC established a market-based adjustment mechanism for deposit interest rates to keep the cost of bank liabilities stable. In 2022, the weighted average interest rate of new time deposits was 11 basis points lower than that of the previous year.
The year 2023 is the start of fully implementing the guiding principles of the 20th CPC National Congress. The PBC will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly act on the guiding principles of the 20th CPC National Congress and the Central Economic Work Conference, work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide development of the non-public sector, stay committed to the general principle of pursuing progress while ensuring stability, make prudent monetary policy more targeted and effective, focus on expanding effective demand and deepening supply-side structural reform, and contribute to high-quality and moderate economic growth.
Thank you.
Shou Xiaoli:
Now we will open the floor for questions. Please identify the media outlet you represent before raising a question.
