(Yicai) April 19 -- China’s distribution of loans was further optimized in the first three months, with most newly-issued yuan-denominated loans being allocated to the manufacturing, infrastructure, services and other key sectors, with a slight increase to the real estate sector as well, according to the head of statistics and analysis department at the People’s Bank of China.

China's yuan-denominated loans increased by CNY9.4 trillion (USD1.3 trillion) in the first quarter, according to PBOC data released on April 12.

Although this amount was less than a year ago, this was mainly due to the impact of the high base line last year, Zhang Wenhong said yesterday. In fact the newly-issued loans in the first three months came to CNY1.1 trillion (USD152 billion), more than in same period of 2022, indicating that the central bank is keeping credit support to the real economy at a high level, he added.

Medium and long-term loans to the manufacturing industry surged 26.5 percent as of March 31 from a year ago, expanding at a clip 12.2 percentage points faster than loans to all industries. Medium and long-term loans to infrastructure projects jumped 13.4 percent, or by CNY1.9 trillion (USD272 billion). While medium and long-term loans to the services sector, not including real estate, advanced 13.1 percent, or by CNY2.8 trillion, accounting for half of the increase in loans to all industries over the period.

Medium- and long-term loans to the property industry climbed 4.9 percent over the period, or by CNY672.7 billion (USD92.9 billion). This was a widening of 0.6 percentage point from the end of last year.

Businesses and public institutions also borrowed more. In the first quarter, loans to these entities swelled CNY7.7 trillion (USD1 billion) and household loans jumped by CNY1.3 trillion. The country’s outstanding yuan loans widened 9.6 percent as of the end of March from a year earlier to CNY247 trillion (USD34.1 trillion).

Editor: Kim Taylor