The headquarters of the People's Bank of China in Beijing Photo: IC

China's total social financing reached 422.96 trillion yuan ($57.82 trillion) as of end-March, up 8.4 percent year-on-year, the People's Bank of China (PBC) said on Sunday. The growth rate was at a relatively high level during the past year and afforded solid support to the real economy, the Xinhua News Agency reported, citing PBC data.

Initial estimates showed that total social financing increased by 15.18 trillion yuan during the quarter, which was 2.37 trillion yuan more than the increase in the same period a year earlier.

Outstanding yuan loans to the real economy stood at 262.18 trillion yuan at the end of March, up 7.2 percent year-on-year, according to the PBC.

Chinese banks issued 9.78 trillion yuan in new yuan-denominated loans in the first quarter, per central bank data. As of end-March, outstanding yuan loans amounted to 265.41 trillion yuan, up 7.4 percent year-on-year.

Chinese analysts said that the data reflected increasing monetary support to the economy, as the country leverages more support measures. The reasonable growth of new loans indicates the country's moderately loose monetary policy and strong support for the real economy, an analyst said.

Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Sunday that the increase in lending was an indicator that the vitality of the Chinese economy has significantly rebounded after the introduction and implementation of incremental policies.

Against the backdrop of the trade conflict, the lending data reflected the sound fundamentals of the domestic economy, Dong said.

China will cut the reserve requirement ratios and interest rates when appropriate this year in line with domestic and international economic and financial conditions as well as the performance of financial markets, PBC Governor Pan Gongsheng said in March.

Pan said that the central bank will use a variety of monetary policy tools, including open market operations, medium-term lending facilities, re-lending and rediscounts, as well as policy rates, to maintain ample liquidity in the market, reduce banks' liability costs, and further drive down the overall costs of social financing.

As the economy continues to demonstrate its resilience, the financial sector will provide stronger and more effective support for the high-quality development of the real economy, Dong added.

Editor: Xu Zhitian