Chinese yuan Photo:VCG

China's yuan-denominated loans rose by 5.13 trillion yuan ($706.19 billion) in January,MKsport according to data released by the People's Bank of China (PBC), the central bank, on Friday.

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 data showed. 

The revised standard for M1 - which has been broadened to include personal demand deposits and non-bank payment institutions' customer reserves - stood at 112.45 trillion yuan at the end of January, growing by 0.4 percent year-on-year and reversing the previous declining trend.

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

The central bank data also showed that outstanding social financing stood at 415.2 trillion yuan at the end of last month, up 8 percent year-on-year. Newly added social financing, a measurement of funds that individuals and non-financial firms receive from the financial system, came in at 7.06 trillion yuan last month, a record high and an increase of 583.3 billion yuan from a high base in the same period last year.

The data shows that amid pro-growth policy measures, increased bank lending, and a recovery in demand, new yuan loans and social financing remained at a high level at the start of 2025, achieving the expected "good start" for the year, Wen Bin, chief economist at China Minsheng Bank, told the Global Times on Friday.

Looking ahead, newly added social financing is expected to maintain a relatively high level in 2025, as the issuance of ultra-long special government bonds will increase this year, bolstering growth while local governments step up efforts to eliminate hidden debts, according to Wen.

Along with the implementation of various policies, an improvement in effective financing demand is also expected. Financial resources will increasingly flow into areas supported by policies, such as tech innovation and consumption, as well as other strategic key sectors and weak links, which will collectively support stable and reasonable growth, he said.

The central bank will maintain a supportive monetary policy stance and policy orientation in 2025, PBC Governor Pan Gongsheng said in December, the Xinhua News Agency reported.

The PBC will utilize a variety of monetary policy tools and increase countercyclical regulation to maintain reasonable and ample liquidity, and to reduce the overall financing costs for enterprises and residents, Pan said while addressing a conference.