III. Money supply and aggregate financing to the real economy grew at a
reasonable pace
Money and credit aggregates maintained reasonable growth, providing strong support
for the real economy. Outstanding M2 recorded RMB249.8 trillion at end-March,
increasing 9.7 percent year on year. Outstanding M1 and M0 registered RMB64.5
trillion and RMB9.5 trillion, respectively, increasing 4.7 percent and 9.9 percent year
on year. The first quarter of 2022 witnessed a net cash injection of RMB431.7 billion,
which was RMB208.8 billion more than that in the same period of the previous year.
According to preliminary statistics, the outstanding AFRE reached RMB325.64 trillion
at end-March. Year-on-year growth registered 10.6 percent, up 0.3 percentage points
compared with the growth recorded at end-2021. The AFRE increment in Q1 2022
totaled RMB12.06 trillion, an increase of RMB1.77 trillion year on year. Growth of
money supply and the AFRE featured the following: first, RMB loans witnessed a
significantly larger year-on-year increase. In Q1, RMB loans issued to the real economy
increased by RMB8.34 trillion, RMB425.8 billion more as compared to the same period
of 2021. Second, government bonds, corporate bonds,
and domestic equity financing
by non-financial enterprises exhibited a larger year-on-year increase, RMB923.8 billion,
RMB405 billion, and RMB51.5 billion more than those in the corresponding period of
the previous year, respectively. Third, trust loans recorded a smaller year-on-year
decrease, while undiscounted bankers’ acceptances registered a smaller year-on-year
increase. In Q1, the year-on-year increase of entrusted loans was RMB51 billion more
than that in Q1 2021; the year-on-year decrease of trust loans was RMB187.9 billion
less than that in Q1 2021; and the year-on-year increase of undiscounted bankers’
acceptances was RMB245.4 billion less than that in Q1 2021. Fourth, asset-backed
securities of depository institutions witnessed a larger year-on-year decrease, while
loans written off exhibited a larger year-on-year increase.