2012 China social financing reached record high

People's Bank of China has announced that China's social financing reached a new record high in 2012.

The social financing scale was 15.76 trillion yuan in 2012, 2.93 trillion more than that of 2011. China's banks extended 8.20 trillion yuan of new loans, which saw an increase of 723 billion yuan on a year-on year basis. By the end of 2012, the broad money balance reached 97.42 trillion yuan, a year-on-year growth of 13.8%.

People's Bank of China says last year's macro-control currency policy effectively curbed excessive price growth and helped ensure stable and fast economic development. The amount of extended new loans is lower than expected.

Analysts say enterprises now have multiple financing channels, and become less dependable on loans. Direct financing measures such as bonds and equity financing help to reduce financing costs for companies, and largely increased last year.