1. Broad money rose by 10.7 percent

At end-July, broad money supply (M2) stood at RMB285.4 trillion, increasing by 10.7 percent year on year, down 0.6 percentage points from a month earlier and 1.3 percentage points from a year earlier. Narrow money supply (M1), at RMB67.72 trillion, rose by 2.3 percent year on year, down 0.8 percentage points from a month earlier and 4.4 percentage points from a year earlier. The amount of currency in circulation (M0) was RMB10.61 trillion, an increase of 9.9 percent year on year. The month saw a net money injection of RMB71 billion.

2. RMB loans grew by RMB16.08 trillion in the first seven months

At end-July, outstanding RMB and foreign currency loans totaled RMB235.92 trillion, up 10.5 percent year on year. Outstanding RMB loans stood at RMB230.92 trillion, registering a year-on-year growth of 11.1 percent, a deceleration of 0.2 percentage points from a month earlier but an acceleration of 0.1 percentage points from a year earlier.

In the first seven months of the year, new RMB loans amounted to RMB16.08 trillion, increasing by RMB1.67 trillion year on year. In July, new RMB loans reached RMB345.9 billion, declining by RMB349.8 billion year on year. By sector, household loans decreased by RMB200.7 billion, with short-term loans and medium and long-term (MLT) loans falling by RMB133.5 billion and RMB67.2 billion, respectively; loans to enterprises and public institutions grew by RMB237.8 billion, with short-term loans falling by RMB378.5 billion and MLT loans and bill financing rising by RMB271.2 billion and RMB359.7 billion, respectively; and loans to non-banking financial institutions climbed by RMB217 billion.

At end-July, outstanding foreign currency loans stood at USD701.5 billion, down 18.6 percent year on year. In the first seven months, foreign currency loans dropped by USD40.1 billion, compared with a fall of USD51.2 billion in the same period last year. In July, foreign currency loans decreased by USD11.4 billion, moderating the decline in the same period last year by USD19.7 billion.

3. RMB deposits increased by RMB18.98 trillion in the first seven months

At end-July, the outstanding amount of RMB and foreign currency deposits was RMB283.36 trillion, up 10 percent year on year. RMB deposits recorded an outstanding amount of RMB277.5 trillion, rising by 10.5 percent year on year, down 0.5 percentage points from a month earlier and 0.9 percentage points from a year earlier.

In the first seven months, RMB deposits increased by RMB18.98 trillion, exceeding that in the same period last year by RMB129 billion. In July, RMB deposits saw a decrease of RMB1.12 trillion, RMB1.17 trillion larger than a year earlier. Specifically, household deposits and deposits of non-financial enterprises fell by RMB809.3 billion and RMB1.53 trillion, respectively, while fiscal deposits and deposits of non-banking financial institutions rose by RMB907.8 billion and RMB413 billion, respectively.

At end-July, the outstanding amount of foreign currency deposits was USD821.8 billion, down 13.8 percent year on year. In the first seven months, foreign currency deposits dropped by USD32.1 billion, moderating the decline in the same period last year by USD11.2 billion. In July, foreign currency deposits dipped by USD15.5 billion, compared with a decrease of USD33 billion in the same period last year.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.49 percent and 1.53 percent respectively in July

In July, lending, cash bond and repo transactions in the interbank RMB market totaled RMB209.55 trillion, with the daily average increasing by 23.2 percent year on year to RMB9.98 trillion. Specifically, the average daily turnover of interbank lending fell by 0.9 percent year on year, while those of cash bond trading and pledged repo trading climbed by 16.3 percent and 27.2 percent year on year, respectively.

In July, the monthly weighted average interest rate for interbank lending stood at 1.49 percent, down 0.08 percentage points month on month but up 0.14 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.53 percent, down 0.14 percentage points month on month but up 0.2 percentage points year on year.

5. RMB cross-border settlement under the current account reached RMB1203.1 billion and RMB cross-border settlement of direct investment posted RMB626.4 billion in July

In July, RMB cross-border settlement under the current account reached RMB1203.1 billion, including RMB838.4 billion in settlement of trade in goods and RMB364.7 billion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB626.4 billion, of which ODI and FDI posted RMB183.8 billion and RMB442.6 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.