China's finance sector ups real economy aid with more credit and services
Night view of CBD buildings in Beijing, China. /CFP
Night view of CBD buildings in Beijing, China. /CFP

Night view of CBD buildings in Beijing, China. /CFP

China has bolstered the role of its financial sector in efforts to energize the real economy over the course of the year, creating a more favorable financial landscape that's aiding a sustained economic rebound, recent data showed.

In an update earlier this month, the People's Bank of China (PBOC) reported an uptick in renminbi loans, with a jump of 19.75 trillion yuan ($2.70 trillion) in the initial nine months of 2023. This was an increase of 1.58 trillion yuan over the same period last year.

According to the PBOC, financial institutions have been aggressively channeling credit into key sectors including advanced manufacturing, emerging industries and technology enterprises, injecting vitality into new economic sectors.

Loans going to the high-tech manufacturing sector in the country have rocketed by 22.5 percent from last year while financing for essential segments of the digital economy has soared by 22.8 percent, according to the China Banking and Insurance Regulatory Commission.

The small-and-micro enterprise sector is also experiencing a financial boost in 2023, with inclusive loans expanding by 4.8 trillion yuan, outpacing last year's total growth. Additionally, the average interest rate for those new loans was 4.8 percent, indicating a 0.4 percentage point drop from 2022 rates.

The financial services landscape is transforming in rural areas as well, with near-universal coverage in banking and insurance services reaching nearly every administrative village, and 97.92 percent coverage across townships nationwide.

Banks are fine-tuning their services for the agrarian sector by easing loan rates and extending credit to modern agricultural enterprises like family farms and cooperatives.

This strategic move highlights China’s firm commitment to a financial setup that boosts its economic trajectory while bringing inclusive financial services to its rural heartlands.

Read more: China's financial sector bolsters real economy for quality growth: Xinhua review

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