Shangyou News:

Statistics show that China's aggregate financing to the real economy (AFRE) in December rose slightly on a year-on-year basis. What factors influenced the AFRE at the end of the year? How do you evaluate the overall performance of the AFRE in 2022? Thank you.

Ruan Jianhong:

This reporter raised two questions. The first question is about the AFRE in December. The second one is about the AFRE in the whole year. First, I will answer the question about the AFRE in December.

In December 2022, the country's increment in the AFRE reached 1.31 trillion yuan, a year-on-year decrease of 1.05 trillion yuan. That was mainly due to a relatively large reduction in bond financing. On one hand, financing of government bonds stood at 280.9 billion yuan, a year-on-year decrease of 886.5 billion yuan. That was because government bonds were issued early this year. The financing of government bonds in the previous 11 months amounted to 6.84 trillion yuan, a year-on-year increase of about 1 trillion yuan. Financial support for the real economy was strengthened in advance. On the other hand, fluctuations in the bond market affected the financing of corporate bonds to some extent. The financing of corporate bonds saw a net decrease of 488.7 billion yuan in December, a year-on-year decrease of 705.4 billion yuan. Despite the slight increase of the AFRE this month, RMB loans issued by financial institutions to the real economy — an important constituent of the AFRE — increased by 1.44 trillion yuan, a year-on-year increase of 405.1 billion yuan. Credit support for the real economy continued to be enhanced.

Now let's take a look at the AFRE for the entire year. Overall, the AFRE in 2022 increased by 32.01 trillion yuan, 668.9 billion yuan more than 2021's increment. The financial system played a significant role in supporting the real economy. Let's look at the structural data.

First, financial institutions strengthened credit support for the real economy. In 2022, RMB loans issued by financial institutions to the real economy increased by 20.91 trillion yuan, 974.6 billion yuan more than 2021's increment. 

Second, the net financing of government bonds kept growing steadily. In 2022, the net financing of government bonds stood at 7.12 trillion yuan, and the increment was 107.4 billion yuan more than that of the same period of the previous year.

Third, off-balance-sheet financing saw a markedly narrower decline. Please note that it was a markedly narrower decline in off-balance-sheet financing. In 2022, entrusted loans increased by 357.9 billion yuan, 527.5 billion yuan more than 2021's increment. Trust loans decreased by 600.3 billion yuan, 1.41 trillion yuan less than 2021's decrement. Undiscounted bankers' acceptances reduced by 341.1 billion yuan, 150.5 billion yuan less than 2021's decrement.

In addition, the financing of corporate bonds saw a less increase. In 2022, the net financing of corporate bonds reached 2.05 trillion yuan, and the increase was 1.24 trillion yuan less than the same period of the previous year. Equity financing was 1.18 trillion yuan, roughly in line with that of the previous year.

Thank you.