China's social financing increment in March was 5.89 trillion yuan, with new RMB loans of 3.64 trillion yuan, and the M2-M1 scissors difference narrowed

In March, China's social financing increased by 5.89 trillion yuan, with new RMB loans of 3.64 trillion yuan, and the M2-M1 spread narrowed by 1.5 percentage points compared to February.

On the 13th, the People's Bank of China released financial data:

• In the first quarter of 2025, the cumulative increase in social financing was 15.18 trillion yuan, 2.37 trillion yuan more than the same period last year. Based on previous values, the increase in social financing in March was 5.89 trillion yuan. The previous value was 2.23 trillion yuan.

• By the end of March 2025, the total social financing stock was 422.96 trillion yuan, a year-on-year increase of 8.4%.

• In the first quarter, RMB loans increased by 9.78 trillion yuan, and RMB deposits increased by 12.99 trillion yuan. Based on previous values, new RMB loans in March were 3.64 trillion yuan, and new RMB deposits were 4.25 trillion yuan.

• At the end of March, the balance of broad money (M2) was 326.06 trillion yuan, a year-on-year increase of 7%. The balance of narrow money (M1) was 113.49 trillion yuan, a year-on-year increase of 1.6%. The balance of currency in circulation (M0) was 13.07 trillion yuan, a year-on-year increase of 11.5%.

• In March, the M2-M1 spread was 5.4 percentage points, narrowing by 1.5 percentage points from 6.9 percentage points in February.

The Financial Times reported that the weighted average interest rate for new loans (in both domestic and foreign currencies) issued to enterprises in March was approximately 3.30%, about 45 basis points lower than the same period last year; the weighted average interest rate for new personal housing loans (in both domestic and foreign currencies) was approximately 3.1%, about 60 basis points lower than the same period last year.

Regarding the outlook for the next stage, industry insiders stated that promoting a reduction in the comprehensive financing costs of society requires a comprehensive approach. Coordination and cooperation among monetary policy, industrial policy, credit policy, and internal banking systems should be strengthened to form a policy synergy that promotes the optimization of credit structure and the improvement of economic quality and efficiency.

Cumulative Increase in Social Financing in the First Quarter Reached 15.18 Trillion Yuan

Preliminary statistics show that in the first quarter of 2025, the cumulative increase in social financing was 15.18 trillion yuan, 2.37 trillion yuan more than the same period last year. Among them,

RMB loans issued to the real economy increased by 9.7 trillion yuan, an increase of 586.2 billion yuan year-on-year;

Foreign currency loans issued to the real economy decreased by 967 billion yuan, a decrease of 249 billion yuan year-on-year;

Entrusted loans increased by 5.5 billion yuan, an increase of 105 billion yuan year-on-year;

Trust loans increased by 53.1 billion yuan, a decrease of 145.2 billion yuan year-on-year;

The amount of undiscounted bank acceptance bills increased by 530 billion yuan, a year-on-year decrease of 20.2 billion yuan;

Net financing of corporate bonds was 525.1 billion yuan, a year-on-year decrease of 472.9 billion yuan;

Net financing of government bonds was 3.87 trillion yuan, a year-on-year increase of 2.52 trillion yuan;

Non-financial corporate domestic stock financing was 96.2 billion yuan, a year-on-year increase of 19.9 billion yuan.

By the end of March, the total social financing stock was 422.96 trillion yuan, a year-on-year increase of 8.4%

Preliminary statistics show that by the end of March 2025, the total social financing stock was 422.96 trillion yuan, a year-on-year increase of 8.4%. Among them,

• The balance of RMB loans issued to the real economy was 262.18 trillion yuan, a year-on-year increase of 7.2%;

• The balance of foreign currency loans issued to the real economy, converted to RMB, was 1.19 trillion yuan, a year-on-year decrease of 34.5%;

• The balance of entrusted loans was 11.24 trillion yuan, a year-on-year increase of 0.6%;

• The balance of trust loans was 4.35 trillion yuan, a year-on-year increase of 6.2%;

• The balance of undiscounted bank acceptance bills was 2.67 trillion yuan, a year-on-year decrease of 12.1%;

• The balance of corporate bonds was 32.59 trillion yuan, a year-on-year increase of 2.4%;

• The balance of government bonds was 84.96 trillion yuan, a year-on-year increase of 19.4%;

• The balance of non-financial corporate domestic stocks was 11.82 trillion yuan, a year-on-year increase of 2.7%.

From a structural perspective,

By the end of March, the balance of RMB loans issued to the real economy accounted for 62% of the total social financing stock during the same period, a year-on-year decrease of 0.7 percentage points;

The balance of foreign currency loans issued to the real economy, converted to RMB, accounted for 0.3%, a year-on-year decrease of 0.2 percentage points;

The balance of entrusted loans accounted for 2.7%, a year-on-year decrease of 0.2 percentage points;

The balance of trust loans accounted for 1%, a year-on-year decrease of 0.1 percentage points;

The balance of undiscounted bank acceptance bills accounted for 0.6%, a year-on-year decrease of 0.2 percentage points;

The balance of corporate bonds accounted for 7.7%, a year-on-year decrease of 0.5 percentage points;

The balance of government bonds accounted for 20.1%, a year-on-year increase of 1.9 percentage points;

The balance of non-financial corporate domestic stocks accounted for 2.8%, a year-on-year decrease of 0.1 percentage points.

Broad money supply increased by 7%

By the end of March, the balance of broad money (M2) was 326.06 trillion yuan, a year-on-year increase of 7%. The balance of narrow money (M1) was 113.49 trillion yuan, a year-on-year increase of 1.6%. The balance of currency in circulation (M0) was 13.07 trillion yuan, a year-on-year increase of 11.5%. In the first quarter, a net cash injection of 249.8 billion yuan was made.

In the first quarter, RMB loans increased by 9.78 trillion yuan

By the end of March, the balance of domestic and foreign currency loans was 269.26 trillion yuan, a year-on-year increase of 6.9%. The balance of RMB loans at the end of the month was 265.41 trillion yuan, a year-on-year increase of 7.4%.

In the first quarter, RMB loans increased by 9.78 trillion yuan. By sector,

Household loans increased by 1.04 trillion yuan, of which short-term loans increased by 160.3 billion yuan, and medium- to long-term loans increased by 883.2 billion yuan;

Loans to enterprises increased by 8.66 trillion yuan, of which short-term loans increased by 3.51 trillion yuan, medium- to long-term loans increased by 5.58 trillion yuan, and bill financing decreased by 544.2 billion yuan; loans from non-banking financial institutions decreased by 86.6 billion yuan.

By the end of March, the balance of foreign currency loans was 535.7 billion USD, a year-on-year decrease of 20.1%. In the first quarter, foreign currency loans decreased by 6.4 billion USD.

In the first quarter, RMB deposits increased by 12.99 trillion yuan

By the end of March, the balance of domestic and foreign currency deposits was 322.11 trillion yuan, a year-on-year increase of 6.9%. The balance of RMB deposits at the end of the month was 315.22 trillion yuan, a year-on-year increase of 6.7%.

In the first quarter, RMB deposits increased by 12.99 trillion yuan. Among them,

Household deposits increased by 9.22 trillion yuan, non-financial enterprise deposits increased by 1.74 trillion yuan, fiscal deposits increased by 819 billion yuan, and deposits from non-banking financial institutions increased by 309 billion yuan.

By the end of March, the balance of foreign currency deposits was 959.8 billion USD, a year-on-year increase of 15.3%. In the first quarter, foreign currency deposits increased by 10.69 billion USD.

Interbank lending and cross-border RMB settlement

In March, the monthly weighted average interest rate for interbank RMB market lending was 1.85%, and the monthly weighted average interest rate for pledged bond repurchase was 1.87%

In the first quarter, the total transaction volume in the interbank RMB market through lending, cash bonds, and repurchase agreements was 431.39 trillion yuan, with an average daily transaction volume of 7.31 trillion yuan, a year-on-year decrease of 17.7%. Among them, the average daily transaction volume for interbank lending decreased by 38.8% year-on-year, cash bonds decreased by 4.5% year-on-year, and pledged repurchase agreements decreased by 19.6% year-on-year.

In March, the weighted average interest rate for interbank lending was 1.85%, which was 0.1 and 0.03 percentage points lower than the previous month and the same period last year, respectively. The weighted average interest rate for pledged repurchase was 1.87%, which was 0.13 and 0.04 percentage points lower than the previous month and the same period last year, respectively.

National foreign exchange reserves balance at 3.24 trillion USD

By the end of March, the national foreign exchange reserves balance was 3.24 trillion USD. By the end of March, the RMB exchange rate was 1 USD to 7.1782 yuan.

Cross-border RMB settlement under the current account

In the first quarter, the amount of cross-border RMB settlement under the current account was 3.96 trillion yuan, and the amount of cross-border RMB settlement for direct investment was 2.09 trillion yuan

In the first quarter, the amount of cross-border RMB settlement under the current account was 3.96 trillion yuan, of which goods trade, service trade, and other current items were 3.12 trillion yuan and 0.84 trillion yuan, respectively; the amount of cross-border RMB settlement for direct investment was 2.09 trillion yuan, of which outward direct investment and foreign direct investment were 0.76 trillion yuan and 1.33 trillion yuan, respectively