People's Bank of China reports January 2025 total social financing increase of CNY 7.06 trillion

The People's Bank of China published preliminary January 2025 total social financing data, showing the flow of funds to the real economy increased by CNY 7.06 trillion, CNY 583.3 billion more than a year earlier. RMB loans to the real economy rose by CNY 5.22 trillion, an increase of CNY 379.3 billion year on year, while foreign-currency loans (RMB equivalent) fell by CNY 39.2 billion, a larger decline than a year earlier by CNY 138.1 billion. Other components included increases in entrusted loans of CNY 44.9 billion, trust loans of CNY 62.3 billion, undiscounted bankers’ acceptances of CNY 465.3 billion, corporate bond net financing of CNY 445.4 billion, government bond net financing of CNY 693.3 billion, and domestic equity financing by non-financial corporates of CNY 47.3 billion. The release reiterates that total social financing measures funds obtained by the real economy from the financial system and draws on multiple official sources. It also notes that, from January 2023, consumer finance companies, wealth management companies and financial asset investment companies were added to the statistical coverage, leading to adjustments to the “RMB loans to the real economy” and “loan write-offs” series within total social financing.