On the 13th, the People's Bank of China released the financial statistics for November. With reasonable growth in loan scale, maintained low loan rates, and reasonable and abundant liquidity... What are the highlights of the financial data for November? In which areas did creditting funds mainly flow?

The financial data released on the same day showed that at the end of November, the balance of RMB loans in China was 254.68 trillion yuan, a year-on-year increase of 7.7%; the balance of broad money (M2) was 311.96 trillion yuan, a year-on-year increase of 7.1%; and the stock of social financing was 405.6 trillion yuan, a year-on-year increase of 7.8%.

"Financial aggregate growth is stable, liquidity is reasonably abundant, and strong support for the real economy has been maintained." According to Wen Bin, Chief Economist of MINSHENG BANK, the year-on-year growth rate of narrow money (M1) at the end of November rebounded compared to the previous month, and the "scissor difference" between M2 and M1 continues to narrow, reflecting a positive economic trend.

In November, the growth scale of RMB loans was reasonable, with an increase of 17.1 trillion yuan in loans across all categories in the first 11 months. "However, the year-on-year growth rate of RMB loans at the end of November declined slightly compared to the previous month, mainly due to local debt resolution and disposal of non-performing assets during the month," said Dong Ximiao, Chief Researcher at Zhaolian. With the increased efforts in local debt resolution, the rapid promotion of local debt replacement in November affected the stock of creditting for the month.

Recently, many regions have disclosed plans for the issuance of refinancing special bonds used for "replacing stock implicit debts." Experts expect that local debt replacement will continue into December, with a decrease in loans shifting to an increase in government bonds, which will help optimize the bank's asset structure and reduce credit risks and capital consumption.

Where did the over 17 trillion yuan in newly added creditting go?

Data shows that in the first 11 months, household loans in China increased by 2.37 trillion yuan, with a significant increase in household loans in November, largely thanks to growth in household medium- and long-term loans.

In October, the scale of personal housing loans in China has stabilized. According to the People's Bank of China, the volume of personal housing loans issued in October exceeded 400 billion yuan, with the amount of early repayments decreasing, and the proportion of early repayments to the outstanding balance of personal housing loans was significantly lower than before a series of real estate financial policies were introduced.

Wen Bin introduced that long-term household loans in China mainly consist of personal housing mortgage loans. With the implementation of real estate financial policies, early repayments of personal housing loans have significantly decreased, and personal housing loans are expected to continue stabilizing and rebounding. Recent data on commodity housing transactions and financial improvements have corroborated each other, enhancing the real estate market and residential confidence.

In the first eleven months, loans to enterprises (including corporations) increased by 13.84 trillion yuan, with enterprises still being the main source of all new loans. Among them, medium and long-term loans increased by 10.04 trillion yuan, accounting for more than seventy percent.

According to the People's Bank of China, at the end of November, the balance of medium and long-term loans in manufacturing was 13.87 trillion yuan, a year-on-year increase of 12.8%; the balance of Specialized, Special and New enterprise loans was 4.25 trillion yuan, a year-on-year increase of 13.2%; the balance of inclusive micro loans was 32.21 trillion yuan, a year-on-year increase of 14.3%. The growth rates of these loans were all higher than the growth rates of various other loans during the same period.

"Currently, banks are trying every means to tap into potential credit demand, focusing their efforts on fields such as scientific and technological innovation and inclusive micro loans." Dong Ximiao believes that recent signals released from the Central Political Bureau meeting and the Central Economic Work Conference further indicate Bullish Signals, with beneficial factors for economic recovery continuously accumulating, and financing demand may improve further. Monetary policy will maintain strong support for the real economy next year, and credit resources will flow more towards significant strategies, key areas, and weak links.

Since the beginning of this year, the interest rate level in China has remained stable with a slight decline, further reducing financing costs for enterprises and residents. According to the People's Bank of China, the weighted average interest rate for newly issued corporate loans (in foreign and local currency) in November was 3.45%, and the interest rate for newly issued personal housing loans (in foreign and local currency) was 3.08%, both down from the previous month and at historical lows.

It is understood that next year the People's Bank of China will continue to effectively use the price adjustment mechanism, strengthen the implementation of interest rate policy, promote a steady decline in overall social financing costs, create a favorable interest rate environment, and support the promotion of Consumer spending and investment expansion.

In 2025, China will implement moderately accommodative monetary policy. In this regard, Zou Lan, director of the Monetary Policy Department of the People's Bank of China, stated that the adverse effects of changes in the external environment are deepening, and China's economic running still faces many difficulties and challenges. The direction of moderately accommodative monetary policy enhances the response capability and space of monetary policy.

Zou Lan stated that the People's Bank of China will effectively implement a moderately expansive MMF policy, timely reduce the reserve requirement ratio and interest rates, maintain sufficient liquidity, and ensure that the scale of social financing and MMF growth align with economic growth and the expected targets for the overall price level. Continuous efforts will be made on prices, further measures on the overall amount, and focused attention on the structure, while balancing support for the growth of the real economy and the stable operation of Banks, thus promoting sustained economic recovery.