MIL-OSI China: Report on Aggregate Financing to the Real Economy (Flow) (Q1-Q3 2024)

According to preliminary statistics, the aggregate financing to the real economy (AFRE) (flow) was RMB25.66 trillion in Q1-Q3 2024, down RMB3.68 trillion from the same period of 2023. Specifically, RMB loans to the real economy registered an increase of RMB15.39 trillion, RMB4.13 trillion smaller than the increase in the same period of 2023; foreign currency-denominated loans to the real economy (RMB equivalent) recorded a decrease of RMB206.3 billion, RMB69.8 billion larger than the decrease in the same period of 2023; entrusted loans registered a decrease of RMB15.5 billion, RMB121.2 billion larger than the decrease in the same period of 2023; trust loans recorded an increase of RMB356.2 billion, RMB292.3 billion larger than the increase in the same period of 2023; undiscounted bankers’ acceptances recorded a decrease of RMB147.6 billion, RMB389.3 billion larger than the decrease in the same period of 2023; net financing of corporate bonds was RMB1.59 trillion, down RMB54.5 billion year on year (y-o-y); net financing of government bonds was RMB7.18 trillion, up RMB1.22 trillion y-o-y; domestic equity financing by non-financial enterprises was RMB170.5 billion, down RMB503.9 billion y-o-y.

Note 1: AFRE (flow) refers to the volume of financing provided by the financial system to the real economy within a certain period. In the calculations of AFRE (flow), data are from the PBOC, NFRA, CSRC, CCDC, NAFMII, etc.

Note 2: Starting from January 2023, the PBOC added three types of non-depository banking financial institutions, namely consumer finance companies, wealth management companies, and financial asset investment companies, into financial statistics, hence adjustments to “RMB loans to the real economy” and “loan write-offs” in AFRE. At end-January 2023, the balance of RMB loans issued to the real economy by the above-mentioned institutions registered RMB841.0 billion, up RMB5.7 billion month on month; the balance of loan write-offs registered RMB170.6 billion, up RMB3.0 billion month on month. The statistics in this report are on a comparable basis.