China's M2 Money Grows 8% in November as Monetary Conditions Stabilize

China’s central bank released key monetary data in mid-December showing steady expansion across major financial indicators. The M2 money supply reached 336.99 trillion yuan in November, representing 8% year-on-year growth and reflecting continued monetary accommodation. M1 money supply, which is more closely tied to immediate spending, expanded at a 4.9% annualized pace during the same period.

Social Financing Expands to 440 Trillion Yuan

Total social financing outstanding at the end of November reached 440.07 trillion yuan, marking an 8.5% increase compared to the prior year. This broad measure of credit expansion demonstrates sustained monetary stimulus flowing through the financial system. In the first eleven months of the year, cumulative social financing additions totaled 33.39 trillion yuan, exceeding the same period last year by 3.99 trillion yuan.

Government Bonds Drive Credit Growth

Government bonds showed particularly strong momentum among credit components. The outstanding balance of government bonds expanded to 94.24 trillion yuan, up 18.8% year-on-year—significantly outpacing other credit categories. Through November, net government bond issuance reached 13.15 trillion yuan, underscoring fiscal support measures in the ongoing economic cycle.

Steady Growth in RMB Lending and Deposits

RMB loans and deposits continued their measured expansion. Outstanding RMB loans totaled 267.42 trillion yuan, increasing 6.3% year-on-year, while the broader measure of all domestic and foreign currency loans stood at 274.84 trillion yuan, also up 6.3% annually. Meanwhile, RMB deposit balances reached 326.96 trillion yuan, expanding 7.7% year-on-year, suggesting confidence in the banking system despite economic headwinds.

The synchronized growth across M2 money supply, credit flows, and deposit accumulation reflects a policy environment designed to maintain financial liquidity and support ongoing credit transmission to the real economy.