PBC statistics showed that both money supply and loans granted by financial institutions grew rapidly with credit structure improving in the first eleven months of this year. Household savings deposits went up by a large margin. The renbinmi exchange rate remained stable while inter-bank transactions went active, reflecting a marked improvement of the money market efficiency. In general, a sound financial environment was created through PBC's continuous implementation of the sound monetary policy. At end-November, broad money (M2) reached RMB17.97 trillion yuan, increasing by 16.6 percent or 3.4 percentage points higher from a year earlier. Narrow money (M1) stood at RMB6.8 trillion yuan, up 18.5 percent from a year earlier, representing an acceleration of 0.6 percentage points over that of the first ten months or 5.6 percentage points over that of the first eleven months of 2001. The growth rate of M2 and M1 was 9.5 and 11.4 percentage points higher respectively than the sum of GDP growth and CPI increase in the first three quarters, indicating adequate money supply in consistency with the needs of economic growth. Cash in circulation (M0) at end-November reached RMB1.63 trillion yuan, up 10.6 percent or accelerating by 4.1 percentage points from a year earlier. Net cash injection in October alone reached RMB33.2 billion yuan, RMB3.7 billion yuan more than that of the same month of 2001 while net cash injection in the first eleven months accumulated to RMB65.8 billion yuan, accelerating by RMB53.1 billion yuan over the same period of 2001.Outstanding deposits in all financial institutions including foreign-funded institutions amounted to RMB16.86 trillion yuan at end-November, up 20.1 percent or accelerating by 5 percentage points from a year earlier. Deposits in all financial institutions during the first eleven months increased by RMB2546 billion yuan, accelerating by RMB865.1 billion yuan over the same period of 2001. Corporate deposits soared by 17.8 percent year-on-year to RMB5.76 trillion yuan at end-November, accelerating by 1.8 and 3 percentage points respectively if compared with that of the first ten months of 2002 and the same period of 2001. Corporate deposits increased by RMB91.5 billion yuan in November, RMB88.6 billion yuan more than the growth of the same period of 2001. During the first eleven months of this year, corporate deposits increased by RMB711.5 billion yuan, accelerating by RMB258.6 billion over the same period of 2001.Outstanding household savings deposits jumped by 18.5 percent from a year earlier to RMB8.57 trillion yuan at the end of November. The growth was 4.6 percentage points faster on a year-on-year basis. Household savings deposits during the first eleven months grew by RMB1201.6 billion yuan, accelerating by RMB399.7 billion yuan over the same period of last year. In particular, time deposits increased by RMB698.7 billion yuan, accelerating by RMB222.2 billion yuan; demand deposits grew by RMB502.9 billion yuan, accelerating by RMB177.5 billion yuan. Outstanding renminbi loans by all financial institutions including foreign-funded institutions increased year-on-year by 15.7 percent to RMB12.86 trillion yuan at end-November, accelerating by 0.3 percentage points over last month or the largest single-month increase since April 1999. Loans by financial institutions increased by RMB56.7 billion yuan from a year earlier to RMB153.9 billion yuan in November alone. New loans extended during the first eleven months of this year reached RMB1580.2 billion yuan, representing an acceleration of RMB557.6 billion yuan over the same period of last year.During the first eleven months of 2002, short-term loans grew by RMB334.7 billion yuan over the same period of last year to RMB673 billion yuan, among which industrial loans increased by RMB230.9 billion yuan, accelerating by RMB175.3 billion yuan from a year earlier; agricultural loans grew by RMB135.5 billion yuan, accelerating by RMB45.9 billion yuan; constructional loans increased by RMB81.5 billion yuan, accelerating by RMB59.5 billion yuan. Long and medium-term loans grew by RMB677.4 billion yuan, accelerating by RMB164.3 billion yuan. In particular, capital construction loans grew by RMB251.2 billion yuan, accelerating by RMB62.3 billion yuan; other long and medium-term loans including consumer loans grew by RMB423.4 billion yuan, accelerating by RMB109.1 billion yuan on a year-on-year basis. Paper financing grew by RMB194.7 billion yuan, accelerating by RMB109.6 billion yuan.The renminbi exchange rate remained stable, being at RMB8.2771 yuan per US dollar at the end of NovemberInter-bank market transactions have been observed active during the first eleven months of 2002, reflecting a marked improvement of the money market efficiency and its significant role in raising short-term financing. The turnover of money market transactions in the first eleven months accumulated to RMB10.75 trillion yuan, up 1.56 times from a year earlier. In particular, the turnover of spot bond transactions reached RMB389 billion yuan, that of inter-bank transactions totaled RMB1.05 trillion yuan and bond repo turnover amounted to RMB9.31 trillion yuan.The People's Bank of China will, through following the guidance laid by the 16th CPC Congress, continue to pursue the sound monetary policy, further improve financial services, and use various monetary policy instruments flexibly to adjust money supply. Efforts will also be made to strengthen the interactions between money market and capital market, expand direct financing, urge commercial banks to strengthen real estate credit management, prevent credit risks and enhance the role of financial leverage, so as to provide strong financial support for the construction of a "well-off" society and promote a sustained, healthy and rapid development of the Chinese economy.
Date of last update
Nov. 29 2018
