Financial industry performance remained healthy andstable in November as reflected in that, growth of money supply and the RMBloans accelerated, the growth of deposit savings decelerated somewhat, and theinter-bank market witnessed active transactions, with the market interest raterebounding slightly.
The growth of both broad money (M2) and narrow money(M1) accelerated. At end-November, broad money (M2) stood at RMB29.24 trillion yuan,increasing by 18.3 percent year-on-year, up 4.3 and 0.3 percentage points froma year earlier and the end-October respectively. From the structural point ofview, the main factor that resulted in accelerated M2 growth was households’savings deposits and corporate time deposits kept sustained high growthmomentum. Narrow money (M1) increased by12.7 percent year-on-year to RMB10.41trillion yuan, up 0.6 percentage points from the end-October, signaling thegrowth of narrow money continued to increase. At end-November, theannualized month-on-month growth rate of M2 was 22.4 percent after seasonallyadjusted. Generally speaking, money supply was consistent with the currenteconomic growth and price level.
At end-November, cash in circulation (M0) increased by10.9 percent to RMB2.24 trillion yuan, with the growth increasing by 1.9percentage points from end-October, but declining by 1 percentage point from ayear earlier. Cash injection in November stood at RMB51.6 billion yuan, RMB38.5billion yuan more than that of the same period of 2004.
The growth of RMB loans accelerated somewhat, withpaper financing increasing evidently. At end-November, outstanding loansdenominated in both local and foreign currencies in all financial institutions reachedRMB20.57 trillion yuan, increasing by 13.8 percent year-on-year, up 0.1 and 0.3percentage points from end-October and a year earlier respectively.
At end-November, RMB loans increased by 14.1 percentfrom a year earlier to RMB19.34 trillion yuan, up 0.3 and 0.6 percentage pointsfrom end-October and a year earlier respectively. The annualized month-on-monthgrowth rate of RMB loans in November was 19.4 percent after seasonallyadjusted, 5.3 percentage points higher than that of end-October. In particular,outstanding balance of medium & long-term loans stood at RMB7.96 trillion yuan,increasing by 18.5 percent year-on-year, down 0.7 and 6.7 percentage pointsfrom end-October and a year earlier respectively. Outstanding balance ofshort-term loans and paper financing increased by 10.41 percent year-on-year toRMB10.41 trillion yuan, up 1.2 and 4.6 percentage points from end-October and ayear earlier respectively.
New RMB loans in November reached RMB225.1billion yuan,RMB 75.6 billion yuan more than the growth of a year earlier, mainly due toRMB94.8 billion yuan more increase of non-financial institutions loans. Inparticular, the increases of short-term loans and paper financing ofnon-financial institutions were RMB67.4 and RMB59.1 billion yuan more than ayear earlier respectively. The increase of consumer loans in November wasRMB17.2 billion yuan less from a year earlier, because the increase of medium& long-term home loans was RMB13 billion yuan less than that of a yearearlier.
The growth momentum of households’ savings depositsdeclined moderately, but growth of corporate current deposits accelerated. Atend-November, outstanding deposits in both local and foreign currencies in allfinancial institutions stood at RMB29.85 trillion yuan, increasing by 18.2percent year-on-year, up 0.2 percentage points from end-October. Outstandinghouseholds’ RMB deposits reached RMB13.85 trillion yuan, increasing by 17.8percent year-on-year, down 0.2 percentage points from October. Outstandingcorporate deposits stood at RMB9.39 trillion yuan, increasing by 15.3 percentyear-on-year, down 0.1 percentage points from end-October. In particular,corporate current deposits increased by 13.2 percent year-on-year, up 0.3percentage points from end-October, the highest point since February of thisyear.
New RMB deposits in November totaled RMB403.9 billion yuan,RMB73.3 billion yuan more than that recorded a year earlier. New households’saving deposits reached RMB167.7 billion yuan, RMB 6.0 billion yuan more thanthat recorded for the same period of 2004. Corporate RMB deposits increased byRMB137.7 billion yuan, RMB16.6 billion yuan more than the same period of 2004.
Inter-bank market witnessed acceleration in the growthof RMB transactions volume, with interest rate rebounding slightly. RMBtransactions in inter-bank market totaled RMB2.14 trillion yuan in November,with a daily average of RMB97.3 billion yuan, increasing by RMB46.8 billion yuanor 92.7 percent compared with a year earlier. The monthly-weighted interestrate for inter-bank borrowing and pledge-based bond repurchase average at 1.50and 1.17percent respectively, both up 0.06 percentage points from theend-October.
RMB exchange rate remained broadly stable. Atend-November, RMB exchange rate stood at 8.0796 yuan per US dollar, down 44basis points from end-October.
