The PBC November statistics report shows that by pursuing sound monetary policy aiming at expanding domestic demand and promoting economic development, China's financial industry witnessed steady growth of monetary and credit aggregates, further improvement of credit structure and speedup of loan turnovers this year. In general, the growth of money supply and credit expansion has by and large served the need of economic growth.According to end-November preliminary statistics, broad money M2 reached RMB 15.4 trillion yuan, up 13.2% over a year earlier or 0.3 percentage points higher than previous month's growth. Narrow money M1 grew to RMB 5.7 trillion yuan, up 11.4% over the same period of last year and 0.9 percentage points lower than the growth of last month. The current growth rate of M2, similar to the average in previous years, is 4.6 percentage points higher than the sum of GDP growth and CPI in the first three quarters, implying that money supply is appropriate.At end-November, cash in circulation (M0) amounted to RMB 1.478 trillion yuan, up 6.5% over the same period of last year. Net cash injection declined by RMB 29.5 billion yuan to RMB 12.7 billion yuan in the first eleven months, while the November net cash injection increased by RMB 0.72 billion yuan to RMB 29.5 billion yuan.Loans extended by financial institutions reached RMB 11 trillion yuan at end-November, up 10.9% over the same period of the previous year. The accumulated growth of loans amounted to RMB 1.0688 trillion yuan from January to November this year, with short-term loans increasing by RMB 328.9 billion yuan, among which, loans on agriculture grew by RMB 89.6 billion yuan, accelerating by RMB 26.9 billion yuan from the previous year's growth. The medium-term working capital loans rose by RMB 44.8 billion yuan, with a 93 billion yuan reduction of growth. The medium and long-term loans increased by 510.8 billion yuan, among which, the growth of household consumption loans accelerated by 65.5 billion yuan to 234.7 billion compared to a year earlier. At the same time, the increase of financing through commercial papers accelerated by 89.1 billion yuan to 143.1 billion over the previous year. In aggregate, the credit structure has been further improved through the increase of loans on agriculture, household consumption as well as commercial paper financing.At end-November, deposits held by all financial institutions totaled RMB 14 trillion yuan, up 15.1% over the same period of last year and accelerating by 2.3 percentage points from the growth of last year. Enterprise deposits increased by 14.8% to RMB 4.9 trillion yuan compared to a year earlier, decelerating by 1.1 percentage points from last month's growth. The increase of enterprise deposits in the first 11 months this year slowed down by RMB 93.8 billion to RMB 450.9 billion yuan.Household savings rose by 13.9% to RMB 7.23 trillion yuan at end-November, with growth higher by 6.6 percentage points over the same period of the previous year and 6 percentage points over last year. The accumulated increase of household savings reached RMB 801.9 billion yuan, up RMB 388.3 billion yuan over the same period of last year, among which, the demand savings grew by RMB 325.4 billion yuan, accelerated by RMB37.3 billion yuan from the growth a year earlier, and the growth of time savings accelerated by RMB 350.9 billion yuan to RMB 476.5 billion yuan. The ratio of time savings to demand savings of the increase of household savings reached 146.4%, up 102.8 percentage points over the previous year, reflecting an obvious enhancement in the stability of household savings.At end-November, the renminbi exchange rate was RMB 8.2774 yuan per US dollar, representing an appreciation of 7 basis points from the end of last year.A senior official of the PBC reiterated that the central bank will continue the sound monetary policy aiming at expanding domestic demand by keeping the appropriate growth of monetary and credit aggregates. Measures will be taken to encourage commercial banks to increase working capital loans moderately to meet the reasonable financing demand of enterprises, to improve credit management authorization and to create incentives in loan marketing. Financial support to technical innovation of enterprises, to small businesses as well as rural households will be strengthened to promote the structural adjustment.
Date of last update
Nov. 29 2018
