1. Broad money rose by 6.3 percent
At end-August, broad money supply (M2) stood at RMB305.05 trillion, rising by 6.3 percent year on year. Narrow money supply (M1), at RMB63.02 trillion, fell by 7.3 percent year on year. The amount of currency in circulation (M0) was RMB11.95 trillion, an increase of 12.2 percent year on year. The first eight months of the year saw a net money injection of RMB602.8 billion.
2. RMB loans grew by RMB14.43 trillion in the first eight months
At end-August, outstanding RMB and foreign currency loans totaled RMB256.24 trillion, up 8 percent year on year. Outstanding RMB loans stood at RMB252.02 trillion, registering a year-on-year growth of 8.5 percent.
In the first eight months, new RMB loans totaled RMB14.43 trillion. By sector, household loans increased by RMB1.44 trillion, with short-term loans and medium and long-term (MLT) loans rising by RMB132.4 billion and RMB1.31 trillion, respectively; loans to enterprises and public institutions grew by RMB11.97 trillion, with short-term loans, MLT loans and bill financing increasing by RMB2.37 trillion, RMB8.7 trillion and RMB759.7 billion, respectively; and loans to non-banking financial institutions climbed by RMB459.1 billion.
At end-August, outstanding foreign currency loans stood at USD594 billion, down 13.8 percent year on year. The first eight months saw a decline of USD62.4 billion in foreign currency loans.
3. RMB deposits increased by RMB12.88 trillion in the first eight months
At end-August, the outstanding amount of RMB and foreign currency deposits was RMB303.21 trillion, up 6.6 percent year on year. RMB deposits recorded an outstanding amount of RMB297.14 trillion, rising by 6.6 percent year on year.
In the first eight months, RMB deposits increased by RMB12.88 trillion. Specifically, household deposits, fiscal deposits and deposits of non-banking financial institutions rose by RMB9.65 trillion, RMB960.6 billion and RMB3.59 trillion, respectively, while deposits of non-financial enterprises dropped by RMB2.88 trillion.
At end-August, the outstanding amount of foreign currency deposits was USD853.1 billion, up 7.3 percent year on year. The first eight months saw an increase of USD55.3 billion in foreign currency deposits.
4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.77 percent and 1.79 percent respectively in August
In August, lending, cash bond and repo transactions in the interbank RMB market totaled RMB181.78 trillion, with the daily average decreasing by 11.2 percent year on year to RMB8.26 trillion. Specifically, the average daily turnovers of interbank lending, cash bond trading and pledged repo trading fell by 27.2 percent, 1.6 percent and 12 percent year on year, respectively.
In August, the monthly weighted average interest rate for interbank lending stood at 1.77 percent, down 0.04 percentage points month on month but up 0.06 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.79 percent, down 0.03 percentage points month on month but up 0.03 percentage points year on year.
5. RMB cross-border settlement under the current account reached RMB1.26 trillion and RMB cross-border settlement of direct investment posted RMB0.59 trillion in August
In August, RMB cross-border settlement under the current account reached RMB1.26 trillion, including RMB0.93 trillion in settlement of trade in goods and RMB0.33 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB0.59 trillion, of which ODI and FDI posted RMB0.2 trillion and RMB0.39 trillion, respectively.
Notes:
1. Data for the current period are preliminary.
2. Starting from 2015, deposits of non-banking financial institutions have been included in RMB deposits, foreign currency deposits and deposits in RMB and foreign currencies, while lending to non-banking financial institutions has been included in RMB loans, foreign currency loans and loans in RMB and foreign currencies.
3. “Loans to enterprises and public institutions” in this report refers to loans to non-financial enterprises, government agencies and organizations.
4. Starting from December 2022, e-CNY in circulation has been included in the amount of currency in circulation (M0). At end-December, e-CNY in circulation stood at RMB13.61 billion. The revision has not caused notable changes to month-end M1 or M2 growth rates of 2022. Shown below are the revised M0 growth rates.
Jan. 2022 |
Feb. 2022 |
Mar. 2022 |
Apr. 2022 |
May 2022 |
Jun. 2022 |
|
Currency in circulation (M0) |
18.5% |
5.8% |
10.0% |
11.5% |
13.5% |
13.9% |
Jul. 2022 |
Aug. 2022 |
Sept. 2022 |
Oct. 2022 |
Nov. 2022 |
Dec. 2022 |
|
Currency in circulation (M0) |
13.9% |
14.3% |
13.6% |
14.4% |
14.1% |
15.3% |
5. Starting from January 2023, the People’s Bank of China has incorporated into the coverage of financial statistics three types of non-depository banking financial institutions, i.e., consumer finance companies, wealth management companies and financial asset investment companies. At end-January 2023, loans issued by the three types of institutions recorded an outstanding balance of RMB841 billion, posting an increase of RMB5.7 billion for the month, while their deposits registered an outstanding amount of RMB22.2 billion, rising by RMB2.7 billion over the month. All the statistics in this report are provided on a comparable basis.