China's yuan loans grow by 5.13 trln yuan in January

China's yuan-denominated loans rose by 5.13 trillion yuan (US$715 billion) in January, central bank data showed on Friday.

Social financing expanded by a record 7.06 trillion yuan last month, 583.3 billion yuan more than the growth in the same period last year, according to the People's Bank of China.

The M2, a broad measure of money supply that covers cash in circulation and all deposits, increased 7 percent year on year to 318.52 trillion yuan at the end of January.

The M1, which covers cash in circulation, demand deposits, and clients' reserves of non-banking payment institutions, stood at 112.45 trillion yuan at the end of last month, up 0.4 percent year on year.

This is the first release of M1 data following the revision of its statistical scope in late 2024 to better reflect the liquidity of financial instruments, with individual demand deposits and clients' non-banking payment institution reserves now included in calculations.

Outstanding yuan loans were at 260.77 trillion yuan at the end of January, an increase of 7.5 percent year on year.

Loans for enterprises and public institutions increased by 4.78 trillion yuan last month, with 3.46 trillion yuan of that total being medium-to-long-term loans.

"Key financial data for the first month of the year reflects positive momentum in economic development as enterprises demonstrate strong demand for loans," said Wen Bin, chief economist at China Minsheng Bank, noting the growing vitality of the real economy.

By the end of January, inclusive loans for small businesses increased 12.7 percent, and medium-to-long-term loans for the manufacturing sector increased 11.4 percent, with both figures outpacing overall loan growth.

The weighted average interest rate of corporate loans issued in January remained at a historic low of 3.4 percent to boost credit demand, according to the central bank.