1.Broad money rose by 11.6 percent

At end-May, broad money supply (M2) stood at RMB282.05 trillion, increasing by 11.6 percent year on year, a deceleration of 0.8 percentage points from a month earlier but an acceleration of 0.5 percentage points from a year earlier. Narrow money supply (M1), at RMB67.53 trillion, rose by 4.7 percent year on year, slowing down by 0.6 percentage points from a month earlier but picking up by 0.1 percentage points from a year earlier. The amount of currency in circulation (M0) was RMB10.48 trillion, an increase of 9.6 percent year on year. The month saw a net money withdrawal of RMB114.8 billion.

2.RMB loans grew by RMB1.36 trillion in May

At end-May, outstanding RMB and foreign currency loans totaled RMB232.64 trillion, up 10.6 percent year on year. Outstanding RMB loans stood at RMB227.53 trillion, registering a year-on-year growth of 11.4 percent, down 0.4 percentage points from a month earlier but up 0.3 percentage points from a year earlier.

In May, new RMB loans amounted to RMB1.36 trillion, RMB541.8 billion less than in the same period last year. By sector, household loans rose by RMB367.2 billion, with short-term loans and medium and long-term (MLT) loans increasing by RMB198.8 billion and RMB168.4 billion, respectively; loans to enterprises and public institutions grew by RMB855.8 billion, with short-term loans, MLT loans and bill financing rising by RMB35 billion, RMB769.8 billion and RMB42 billion, respectively; and loans to non-banking financial institutions increased by RMB60.4 billion.

At end-May, outstanding foreign currency loans stood at USD721.5 billion, down 20.7 percent year on year. In May, foreign currency loans dropped by USD16 billion, compared with a decrease of USD11.6 billion in the same period last year.

3.RMB deposits increased by RMB1.46 trillion in May

At end-May, the outstanding amount of RMB and foreign currency deposits was RMB280.94 trillion, up 11.1 percent year on year. RMB deposits recorded an outstanding amount of RMB274.91 trillion, rising by 11.6 percent year on year, 0.8 percentage points slower than a month earlier but 1.1 percentage points faster than a year earlier.

In May, RMB deposits increased by RMB1.46 trillion, RMB1.58 trillion less than in the same period last year. Specifically, household deposits, fiscal deposits and deposits of non-banking financial institutions rose by RMB536.4 billion, RMB236.9 billion and RMB322.1 billion, respectively, while deposits of non-financial enterprises fell by RMB139.3 billion.  

At end-May, the outstanding amount of foreign currency deposits was USD851.8 billion, down 13.5 percent year on year. In May, foreign currency deposits declined by USD30.1 billion, compared with a fall of USD13 billion in the same period last year.

4.The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.5 percent and 1.55 percent respectively in May

In May, lending, cash bond and repo transactions in the interbank RMB market totaled RMB196.9 trillion, with the daily average increasing by 30.5 percent year on year to RMB9.38 trillion. Specifically, the average daily turnovers of interbank lending, cash bond trading and pledged repo trading climbed by 19.4 percent, 25.9 percent and 32.5 percent year on year, respectively.

In May, the monthly weighted average interest rate for interbank lending stood at 1.5 percent, falling by 0.19 percentage points from last month and remaining unchanged from the same period last year. The monthly weighted average interest rate for pledged repos was 1.55 percent, down 0.22 percentage points month on month but up 0.08 percentage points year on year.

5. RMB cross-border settlement under the current account reached RMB1153.9 billion and RMB cross-border settlement of direct investment posted RMB554.6 billion in May

In May, RMB cross-border settlement under the current account reached RMB1153.9 billion, including RMB902 billion in settlement of trade in goods and RMB251.9 billion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB554.6 billion, of which ODI and FDI posted RMB201.3 billion and RMB353.3 billion, 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.

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.