The recently released 2024 annual reports of China's listed banks highlight the diverse dynamics of China's economic development, as banks, serving as the primary channels for corporate and household financing, in their capital underscore the economy's growth momentum.

Key sectors in focus: tech firms attracting major capital

Data from annual reports indicate that over the past year, listed banks have continued to expand credit issuance to support the real economy. In 2024, China's four major state-owned banks, which include Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), and China Construction Bank (CCB), collectively issued more than 8 trillion yuan (about 1.11 trillion U.S. dollars) in new loans.

ICBC and ABC each saw loan increases exceeding 2 trillion yuan.

Strategic national initiatives and key industries remained top priorities for credit allocation, the reports showed, and banks reported notable growth in loans directed toward manufacturing, strategic emerging industries, and elderly care services.

By the end of 2024, ICBC's outstanding loans to strategic emerging industries had exceeded 3.1 trillion yuan, while BOC's lending to these industries had grown by 26.31 percent year on year.

CCB's loans to the manufacturing sector totaled 3.04 trillion yuan, and the medium-to-long-term loans to the manufacturing industry by ABC saw a 20.2-percent year-on-year increase.

Technology-driven enterprises also gained traction. CCB's loans to science and technology-related industries topped 3.5 trillion yuan by the end of 2024, while ICBC's loans to small and medium-sized enterprises (SMEs) that are specialized, refined, distinctive and innovative rose over 54 percent from the start of the year. China Everbright Bank also reported a 42.1-percent year-on-year increase in loans to tech firms.

Behind the figures, banks have been accelerating the establishment of financial mechanisms that align with technological innovation. ICBC has set up 25 regional technology finance centers nationwide, ABC expanded its network of tech-focused branches to nearly 300, and BOC launched a dedicated science and technology innovation fund.

However, many SMEs in the tech field still face financing challenges. At their earnings briefings, multiple banks pledged to deepen integrated equity-loan-bond-insurance financial services and tailor products to meet diverse innovation needs.

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.

Unlocking credit growth: fueling real economy

Multiple banks have signaled their commitment to maintaining stable credit growth, ensuring strong, sustained financial support for the real economy.

ICBC pledged over 6 trillion yuan in financing to private enterprises over the next three years. ABC aims to exceed 7.5 trillion yuan in loans to private firms by 2025, with inclusive finance loans growing faster than average.

A review of various banks' strategic directions suggests that credit allocation priorities for 2025 are becoming clearer. Bank of Communications plans to issue 480 billion yuan in corporate loans, targeting major infrastructure projects, manufacturing, rural revitalization, and strategic emerging industries aligned with government policies.

CCB plans to further expand its retail credit and focus on green finance in key sectors such as energy, industry, and transportation, while continuing to support major infrastructure projects. China Everbright Bank will allocate over 70 percent of its corporate credit growth to tech, green, and inclusive sectors.

"The implementation of a more proactive fiscal policy and a moderately loose monetary policy this year will provide a favorable macroeconomic environment for the banking industry," said ABC president Wang Zhiheng, adding that in 2025, the bank will seize strategic opportunities in rural development, industrial upgrades, and green transitions, among others.

Experts believe that as banks align their strategies with macroeconomic priorities, they will continue to identify and meet effective credit demand, enhancing the precision and adaptability of financial services, thus, continuing to channel high-quality funding to sustain the real economy's growth.