1. Broad money and narrow money rose by 11.8 percent and 3.7 percent respectively

At end-December, broad money supply (M2) stood at RMB266.43 trillion, increasing by 11.8 percent year on year, a deceleration of 0.6 percentage points from a month earlier but an acceleration of 2.8 percentage points from a year earlier. Narrow money supply (M1), at RMB67.17 trillion, rose by 3.7 percent year on year, a deceleration of 0.9 percentage points from a month earlier but an acceleration of 0.2 percentage points from a year earlier. The amount of currency in circulation (M0) was RMB10.47 trillion, increasing by 15.3 percent year on year. The full year saw a net money injection of RMB1.39 trillion.

2. RMB loans grew by RMB21.31 trillion for the full year while foreign currency loans fell by USD177.9 billion

At end-December, outstanding RMB and foreign currency loans totaled RMB219.1 trillion, up 10.4 percent year on year. Outstanding RMB loans stood at RMB213.99 trillion, registering a year-on-year growth of 11.1 percent, up 0.1 percentage points from a month earlier but down 0.5 percentage points from a year earlier.

RMB loans grew by RMB21.31 trillion for the full year, surpassing that recorded for 2021 by RMB1.36 trillion. By sector, household loans rose by RMB3.83 trillion, with short-term loans and medium and long-term (MLT) loans increasing by RMB1.08 trillion and RMB2.75 trillion, respectively; loans to enterprises and public institutions grew by RMB17.09 trillion, with short-term loans, MLT loans and bill financing climbing by RMB3.03 trillion, RMB11.06 trillion and RMB2.96 trillion, respectively; and loans to non-banking financial institutions increased by RMB125.4 billion. In December, new RMB loans reached RMB1.4 trillion, RMB266.5 billion higher than in the same period last year.

At end-December, outstanding foreign currency loans stood at USD734.8 billion, down 19.5 percent year on year. Foreign currency loans fell by USD177.9 billion for the full year, compared with a rise of USD45.7 billion in the previous year. In December, foreign currency loans dipped by USD34.2 billion, moderating the decline in the same period a year earlier by USD1.9 billion.

3. RMB deposits rose by RMB26.26 trillion for the full year while foreign currency deposits declined by USD143 billion

At end-December, the outstanding amount of RMB and foreign currency deposits was RMB264.45 trillion, up 10.8 percent year on year. RMB deposits recorded an outstanding amount of RMB258.5 trillion, rising by 11.3 percent year on year, a deceleration of 0.3 percentage points from a month earlier but an acceleration of 2 percentage points from a year earlier.

RMB deposits increased by RMB26.26 trillion for the full year, an expansion of RMB6.59 trillion year on year. Specifically, household deposits, deposits of non-financial enterprises and deposits of non-banking financial institutions rose by RMB17.84 trillion, RMB5.09 trillion and RMB1.38 trillion, respectively, while fiscal deposits dropped by RMB58.6 billion. In December, RMB deposits increased by RMB724.2 billion, RMB440.3 billion less than in the same period a year earlier.

At end-December, the outstanding amount of foreign currency deposits was USD853.9 billion, down 14.3 percent year on year. Foreign currency deposits decreased by USD143 billion for the full year, compared with an increase of USD107.7 billion in the previous year. In December, foreign currency deposits fell by USD8.2 billion, compared with a decline of USD21.1 billion in the same period a year earlier.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.26 percent and 1.41 percent respectively in December

Lending, cash bond and repo transactions in the interbank RMB market totaled RMB1798.2 trillion for the full year, averaging RMB7.19 trillion per day. Specifically, the average daily turnovers of interbank lending, cash bond trading and pledged repo trading stood at RMB587.3 billion, RMB1.08 trillion and RMB5.5 trillion, respectively.

In December, the monthly weighted average interest rate for interbank lending stood at 1.26 percent, down 0.29 percentage points month on month and 0.76 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.41 percent, down 0.2 percentage points month on month and 0.68 percentage points year on year.

5. Official foreign exchange reserves stood at USD3.13 trillion

At end-December, China’s foreign exchange reserves stood at USD3.13 trillion, and the USD/CNY exchange rate was 6.9646.

6. RMB cross-border settlement under the current account reached RMB10.51 trillion and RMB cross-border settlement of direct investment posted RMB6.76 trillion in 2022

In 2022, RMB cross-border settlement under the current account reached RMB10.51 trillion, including RMB7.92 trillion in settlement of trade in goods and RMB2.59 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB6.76 trillion, of which ODI and FDI posted RMB1.92 trillion and RMB4.84 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.

Date of last update JAN. 10, 2023