1. Broad money rose by 11.3 percent

At end-June, broad money supply (M2) stood at RMB 287.3 trillion, increasing by 11.3 percent year on year, down 0.3 percentage points from a month earlier and 0.1 percentage points from a year earlier. Narrow money supply (M1), at RMB69.56 trillion, rose by 3.1 percent year on year, down 1.6 percentage points from a month earlier and 2.7 percentage points from a year earlier. The amount of currency in circulation (M0) was RMB 10.54 trillion, an increase of 9.8 percent year on year. The first half of the year saw a net money injection of RMB 78.9 billion.

2. RMB loans grew by RMB15.73 trillion in H1

At end-June, outstanding RMB and foreign currency loans totaled RMB 235.73 trillion, up 10.6 percent year on year. Outstanding RMB loans stood at RMB 230.58 trillion, registering a year-on-year growth of 11.3 percent, a deceleration of 0.1 percentage points from a month earlier but the same pace as a year earlier.

In the first half of the year, new RMB loans amounted to RMB 15.73 trillion, increasing by RMB 2.02 trillion year on year. By sector, household loans rose by RMB  2.8 trillion, with short-term loans and medium and long-term (MLT) loans increasing by RMB 1.33 trillion and RMB 1.46 trillion, respectively; loans to enterprises and public institutions grew by RMB 12.81 trillion, with short-term loans and MLT loans rising by RMB 3.84 trillion and RMB 9.71 trillion, respectively, and bill financing falling by RMB892.4 billion; and loans to non-banking financial institutions dropped by RMB1.5 billion. In June, new RMB loans increased by RMB 229.6 billion year on year to reach RMB 3.05 trillion.

At end-June, outstanding foreign currency loans stood at USD 712.9 billion, down 20.1 percent year on year. In the first half of the year, foreign currency loans dipped by USD 28.7 billion, compared with a fall of USD20.1 billion in the same period last year. In June, foreign currency loans decreased by USD8.6 billion, moderating the decline in the same period a year earlier by USD8.7 billion.

3. RMB deposits increased by RMB20.1 trillion in H1

At end-June, the outstanding amount of RMB and foreign currency deposits was RMB284.67 trillion, up 10.5 percent year on year. RMB deposits recorded an outstanding amount of RMB278.62 trillion, rising by 11 percent year on year, 0.6 percentage points slower than a month earlier but 0.2 percentage points faster than a year earlier.

In the first half of the year, RMB deposits increased by RMB20.1 trillion, up RMB1.3 trillion compared with the same period last year. Specifically, household deposits, deposits of non-financial enterprises and deposits of non-banking financial institutions rose by RMB11.91 trillion, RMB4.96 trillion and RMB1.08 trillion, respectively, while fiscal deposits fell by RMB12.5 billion. In June, RMB deposits grew by RMB3.71 trillion, RMB1.12 trillion less than the growth recorded a year earlier.

At end-June, the outstanding amount of foreign currency deposits was USD837.4 billion, down 15.1 percent year on year. In the first half of the year, foreign currency deposits declined by USD16.6 billion, compared with a fall of USD10.3 billion in the same period last year. In June, foreign currency deposits decreased by USD14.4 billion, compared with an increase of USD2.2 billion in the same period last year.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.57 percent and 1.67 percent respectively in June

In June, lending, cash bond and repo transactions in the interbank RMB market totaled RMB1014.23 trillion, with the daily average increasing by 22.4 percent year on year to RMB8.25 trillion. Specifically, the average daily turnovers of interbank lending, cash bond trading and pledged repo trading climbed by 9.2 percent, 14.6 percent and 25.5 percent year on year, respectively.

In June, the monthly weighted average interest rate for interbank lending stood at 1.57 percent, up 0.07 percentage points month on month and 0.01 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.67 percent, up 0.12 percentage points month on month and 0.1 percentage points year on year.

5. Official foreign exchange reserves stood at USD3.19 trillion

At end-June, China’s foreign exchange reserves stood at USD3.19 trillion, and the USD/CNY exchange rate was 7.2258.

6. RMB cross-border settlement under the current account reached RMB6.3 trillion and RMB cross-border settlement of direct investment posted RMB3.53 trillion in H1

In the first half of the year, RMB cross-border settlement under the current account reached RMB6.3 trillion, including RMB4.84 trillion in settlement of trade in goods and RMB1.46 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB3.53 trillion, of which ODI and FDI posted RMB1.19 trillion and RMB2.34 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.

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.