(ECNS) -- China's broad money supply (M2) rose 7% year-on-year to 326.06 trillion yuan (about $44.71 trillion) by the end of March, the central bank said Sunday.
In the first quarter, net cash injections totaled 249.8 billion yuan. New RMB loans increased by 9.78 trillion yuan, with 3.64 trillion yuan issued in March alone, growing by 547 billion yuan year-on-year.
Industry experts say that while China's financial system continues to increase credit supply, more positive changes are emerging on the demand side from businesses and individuals, jointly driving a rebound in loan growth in March.
On one hand, effective credit demand from enterprises has grown. Experts noted that in March, both the manufacturing and services sectors in China saw improved business activity. The Manufacturing Purchasing Managers' Index (PMI) reached 50.5 percent, remaining above the expansion-contraction threshold for two consecutive months.
Meanwhile, the implementation of major projects is accelerating, with more exceeding 10 billion yuan in investment. These positive developments are reflected in the credit market as a revival in effective financing demand.
On the other, personal housing loans grew rapidly. According to market data, March saw a notable increase in both new and second-hand home transactions in many cities. The total transaction area of second-hand houses in 30 major cities rose by more than 20 percent year-on-year. This rebound in the housing market has driven a rise in personal housing loan issuance.
In addition, the positive growth in consumer loans has supported the recent increase in overall lending. According to market analysts, by diversifying financial products and offering more convenient services, banks have better met the consumer credit needs of residents.
(By Gong Weiwei)
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