According to the latest data released by the People's Bank of China on December 12, China's RMB loans increased by 1.21 trillion yuan in November, a significant increase from the 615.2 billion yuan in October. At the end of November, the balance of broad money (M2) was 264.7 trillion yuan, up 12.4% year on year, 0.6 percentage points higher than that at the end of last month and 3.9 percentage points higher than that at the same period last year. The increase in social financing scale in November was 1.99 trillion yuan, a year-on-year decrease of 610.9 billion yuan. From the perspective of credit structure, medium and long-term loans of enterprises grew strongly, accounting for 60% of the new RMB loans in November. "The continuous increase of enterprises' medium - and long-term credit demand means that enterprises' expectations for the future economy are steadily rising, and their supporting role for economic growth will continue to emerge." Liang Si, a researcher at the Bank of China Research Institute, said. Wang Qing, the chief macro analyst of Oriental Jincheng, believes that the strong performance of medium and long-term loans of enterprises in November is mainly due to the strong credit support of policies in infrastructure, manufacturing, real estate and other fields. On the one hand, in November, the mortgage supplementary loan (PSL) increased significantly, which directly promoted the bank's credit extension scale for infrastructure investment. On the other hand, after the two batches of infrastructure construction funds are released, the demand for follow-up supporting loans will be driven. In addition, the refinancing support tool for equipment upgrading and transformation continued to drive the medium and long-term loans in the manufacturing industry to maintain a high growth momentum. Driven by the recovery of credit, the growth rate of M2 also rebounded from last month. The data shows that the year-on-year growth rate of M2 in November was 12.4%, the highest since April 2016, 0.6 percentage points higher than that at the end of last month and 3.9 percentage points higher than that at the same period last year. In this regard, Wen Bin, the chief economist of China Minsheng Bank, analyzed that, under the continuous strengthening of the stable growth policy, credit supply and non-standard financing maintained a certain degree of prosperity, which helped to boost M2 growth. At the same time, the Central Bank maintained reasonable and sufficient liquidity through various monetary policy tools. In November, financial deposits decreased by 368.1 billion yuan, an increase of 1.51 trillion yuan month on month, which also helped maintain M2 growth at a high level. Wen Bin pointed out that since November, with the continuous optimization of epidemic prevention and control policies, the positive setting of important meetings, and the accelerated implementation of the policy of stabilizing growth, the market is expected to turn around rapidly, which will help support the effective repair of domestic demand against the backdrop of falling external demand. Subsequently, many policies may still be issued to boost market confidence and stimulate the vitality of the whole society, continue to promote credit expansion in infrastructure, manufacturing, real estate and structural policy support areas, and help the economic operation to maintain a reasonable range. (Liu Xinshe)