2018年CRI Lowered M2 growth sign of a healthy financial development: experts

 

New data from China's central bank shows the M2 rate saw lower growth through the end of this past year.

Observers suggest this is part of deleveraging and the prevention of major systemic risks in the financial sector¹.

The M2, a broad measure of money supplies that covers cash in circulation and all deposits, reached over 167 trillion yuan as of the end of December, up 8.2 percent from a year earlier.

The growth rate is down 3.1 percent compared to the same period a year ago.

Ruan Jianhong is the head of Statistics and Analysis with the People's Bank of China.

"The lowered growth rate of the M2 at the end of last year reflects that deleveraging and tightened² financial supervision³ is seeing money being used in a more standardized⁴ way. Money circulation within financial institutes became less, which means decreased deposits. This is why the growth of the M2 is lower," said Ruan.

The same figures shows personal loans in China hit 19.4 trillion yuan in 2017, up 9 percent from the previous year.

Dong Ximiao is a senior researcher with Chongyang Institute for Financial Studies at Renmin University.

"The finance industry is serving the real economy in an increasingly high extent. This shows the momentum⁵ of the macro economy in China is being further consolidated," said Dong.

Ruan Jianhong adds that the monetary⁶ policy in 2017 has upgraded China's economic structure.

"The financial support is increasingly flowing toward the service and advanced manufacturing industries while industries with over capacity have received less loans. This backs up national strategies to adjust the industrial structure," said Ruan.

Growth rate of new home loans last year dropped by 14.5 percent.

Housing loans still took up over 40 percent of the total loans put out by banks last year.

Ruan Jianhong says decline is being attributed to the overall change in policies.

"In 2017, the People's Bank of China adhered to the principle that a house is for living, and not for making money. We actively⁷ guided the financial system on the regulations behind the real estate market, releasing a series of financial policies to encourage renting and strengthen home loan management. Our aim is forming a sustainable real estate market in China," added Tuan.

It's widely expected the People's Bank of China will continue to adopt a neutral monetary policy this year to keep the money supply in check, as well as support economic structural⁸ reforms.

1 sector   

n.部门，部分；防御地段，防区；扇形

参考例句：

• The export sector will aid the economic recovery. 出口产业将促进经济复苏。
• The enemy have attacked the British sector.敌人已进攻英国防区。

2 tightened   

收紧( tighten的过去式和过去分词 )； （使）变紧； （使）绷紧； 加紧

参考例句：

• The rope holding the boat suddenly tightened and broke. 系船的绳子突然绷断了。
• His index finger tightened on the trigger but then relaxed again. 他的食指扣住扳机，然后又松开了。

3 supervision   

n.监督，管理

参考例句：

• The work was done under my supervision.这项工作是在我的监督之下完成的。
• The old man's will was executed under the personal supervision of the lawyer.老人的遗嘱是在律师的亲自监督下执行的。

4 standardized   

adj.标准化的

参考例句：

• We use standardized tests to measure scholastic achievement. 我们用标准化考试来衡量学生的学业成绩。
• The parts of an automobile are standardized. 汽车零件是标准化了的。

5 momentum   

n.动力，冲力，势头；动量

参考例句：

• We exploit the energy and momentum conservation laws in this way.我们就是这样利用能量和动量守恒定律的。
• The law of momentum conservation could supplant Newton's third law.动量守恒定律可以取代牛顿第三定律。

6 monetary   

adj.货币的，钱的；通货的；金融的；财政的

参考例句：

• The monetary system of some countries used to be based on gold.过去有些国家的货币制度是金本位制的。
• Education in the wilderness is not a matter of monetary means.荒凉地区的教育不是钱财问题。

7 actively   

adv.积极地，勤奋地

参考例句：

• During this period all the students were actively participating.在这节课中所有的学生都积极参加。
• We are actively intervening to settle a quarrel.我们正在积极调解争执。

8 structural   

adj.构造的，组织的，建筑（用）的

参考例句：

• The storm caused no structural damage.风暴没有造成建筑结构方面的破坏。
• The North American continent is made up of three great structural entities.北美大陆是由三个构造单元组成的。