China's social financing stock reached 403.45 trillion yuan by the end of October, marking a significant 7.8% increase compared to the previous year, based on preliminary data from the People's Bank of China. This figure encapsulates the total capital accessible to the real economy from the financial system.
It encompasses both yuan and foreign currency loans, along with bond issuance and other channels. Notably, yuan-denominated loans to the real economy, which represent 62.3% of total financing, stood at 251.16 trillion yuan, reflecting a year-on-year growth of 7.7%. In contrast, foreign currency loans, when converted to yuan, dropped 21.9% to 1.39 trillion yuan.
Additionally, entrusted loans experienced a slight decline of 0.7% to 11.23 trillion yuan, while trust loans surged by 11.1% to 4.28 trillion yuan. Bankers' acceptances that remain to be discounted plummeted by 17.2% to 2.2 trillion yuan, whereas corporate bonds recorded a modest rise of 2.2% to 32.11 trillion yuan. Government bonds, however, exhibited the most robust growth, rising by 15.2% to 78.02 trillion yuan, now accounting for 19.3% of the social financing stock. Furthermore, equities of non-financial firms reached 11.63 trillion yuan, reflecting a 2.5% increase year-on-year. The central bank also noted that since January 2023, finance firms, asset management firms, and financial investment companies have been integrated into its calculations, which impacts yuan loans and charge-off adjustments..