China Redirects Credit Toward Innovation, Green Growth and Social Priorities
The People's Bank of China (PBOC) said in its second-quarter monetary policy report that by the end of June, loans to these sectors had grown faster than overall credit expansion. Sci-tech lending rose 12.5% year on year to 44.1 trillion yuan (US$6.18 trillion), 5.8 percentage points above total loan growth. Green loans increased 25.5%, continuing a five-year trend that has lifted balances from 9.9 trillion yuan in 2019 to 36.6 trillion yuan by end-2024, with annual growth above 20%.
Inclusive finance also expanded, with loans to micro and small enterprises reaching 65 trillion yuan, accounting for 38.2% of all corporate loans compared with 30.4% in 2014. Since 2018, inclusive SME loans have grown more than 20% annually, with the number of borrowers tripling. Loans to the elderly care sector surged 43%, while lending to the digital economy grew 11.5%, both outpacing overall credit.
The PBOC noted that this marks a shift from 2016, when over 60% of new credit went to real estate and infrastructure. Looking ahead, the central bank said it will continue to advance the development of elderly care finance and broaden product offerings in the sector, while reinforcing support for innovation and green development.
First, please LoginComment After ~