Infrastructure construction continues to be positive. Economic data exceeding expectations is positive for infrastructure construction. This is one; Pre-sale fund supervision has met national unified regulations, and the tight capital flow of real estate companies is expected to be alleviated. This is the second one; With stable growth, Everything is possible! The signal could not be more obvious. This wave of real estate and infrastructure chain cannot be ignored.
The increment of social financing scale refers to the amount of funds obtained by the real economy from the financial system within a certain period.
Social financing is an important supplementary form of financing for economic entities. It makes up for the shortcomings of a single bank in narrow financing channels and short supply of funds. It helps to improve the level of financing and investment in the whole society and improve the efficiency of fund utilization. Promote rapid economic growth.
Social financing is a broader statistical indicator of money circulation relative to new loans. In addition to new loans from financial institutions, total social financing also further includes stock and bond financing, etc., so that money flow The statistics extend to financing sources through the stock market and bond market, thus more truly reflecting the supply and demand situation of social and economic funds. The central bank released a statistical report on the stock of social financing at the end of October 2018 on November 13, 2018. The data showed that the stock of social financing at the end of October was 197.89 trillion yuan, a year-on-year increase of 10.2%.
Faced with the year-by-year expansion of direct financing, the central bank’s liquidity management is increasingly difficult. In order to better implement macro-prudential policies, the People’s Bank of China is planning to launch a statistical caliber of currency circulation based on social financing—— "Social Financing Growth Indicator". This indicator is based on describing the scale of social financing, and may partially replace M2 (cash + residents’ savings deposits + corporate deposits) as a reference indicator in the monetary policy formulation process, which means that asset prices such as stock markets will be included in the consideration of monetary policy operations. Among them, it is conducive to establishing a new analysis framework and monitoring scope in accordance with the requirements of macro-prudential supervision.
The 2011 Annual Work Conference of the People's Bank of China proposed "maintaining a reasonable scale of social financing", and the Fifth Plenary Session of the State Council on January 18, 2011 emphasized "maintaining a reasonable scale and pace of social financing." This marks that social financing as a new concept has officially entered the practice of China's monetary policy formulation and operation.
Since 2018, there have been two adjustments to the scale of social financing: first, in July 2018, the central bank included asset-backed securities and loan write-offs of depository financial institutions into social financing statistics; second, In September 2018, the central bank included local government special bonds in social financing statistics.