Capital flows from listed banks demonstrate China's economic dynamism

Boosting consumption, demand: consumer loans surging

Consumer credit has emerged as a catalyst for domestic spending. Banks actively promoted traditional sectors like automobiles and home appliances while cultivating new consumption scenarios in tourism, elderly care, and other services.

By end-2024, Bank of Communications saw personal consumer loans jump 90.44 percent year-on-year, adding 156.8 billion yuan. ABC's consumer loans grew 28.3 percent, that of CCB rose 25.21 percent, and China Merchants Bank's consumer loan balance hit 396.16 billion yuan, up 31.38 percent year-on-year.

CCB also reported over 1 trillion yuan in credit card loans.

At the same time, banks have focused on meeting residents' essential and improved housing needs by maintaining stable personal mortgage lending. By the end of 2024, CCB's personal mortgage clients had surpassed 15 million, with outstanding mortgage loans totaling 6.19 trillion yuan. China CITIC Bank's mortgage loan balance increased by 61.41 billion yuan, ranking among the highest in the industry.

Since the fourth quarter of last year, China's housing market has shown positive changes following the implementation of a series of policy measures, which was also reflected in the financial sector.

According to CCB vice-president Ji Zhihong, the bank's daily average mortgage loan applications in Q4 2024 rose by 73 percent quarter-on-quarter and 35 percent year-on-year, with early repayments declining further in Q1 2025.

With additional policies aimed at boosting consumption on the horizon, the consumer finance market is poised for new growth opportunities. Dong Qingma, deputy dean of the Institute of Chinese Financial Studies at Southwestern University of Finance and Economics, stated that financial institutions will continue to ramp up support for consumption through fiscal incentives, interest subsidies, and tax reductions, injecting more capital into the economy.

While CMB's annual report highlighted plans to tap into consumption scenarios encouraged by national policies, including high-end and comprehensive household spending. ICBC announced that it will actively engage with emerging economic models such as the ice and snow economy and the silver economy to further unleash consumption potential and enhance economic circulation.