1. Broad money rose by 10.6 percent

At end-August, broad money supply (M2) stood at RMB286.93 trillion, increasing by 10.6 percent year on year, down 0.1 percentage points from a month earlier and 1.6 percentage points from a year earlier. Narrow money supply (M1), at RMB67.96 trillion, rose by 2.2 percent year on year, down 0.1 percentage points from a month earlier and 3.9 percentage points from a year earlier. The amount of currency in circulation (M0) was RMB10.65 trillion, an increase of 9.5 percent year on year. The month saw a net money injection of RMB38.6 billion.

2. RMB loans grew by RMB17.44 trillion in the first eight months

At end-August, outstanding RMB and foreign currency loans totaled RMB237.23 trillion, up 10.5 percent year on year. Outstanding RMB loans stood at RMB232.28 trillion, registering a year-on-year growth of 11.1 percent, the same pace as a month earlier but an acceleration of 0.1 percentage points from a year earlier.

In the first eight months of the year, new RMB loans amounted to RMB17.44 trillion, increasing by RMB1.76 trillion year on year. In August, new RMB loans rose by RMB86.8 billion year on year to RMB1.36 trillion. By sector, household loans increased by RMB392.2 billion, with short-term loans and medium and long-term (MLT) loans rising by RMB232 billion and RMB160.2 billion, respectively; loans to enterprises and public institutions grew by RMB948.8 billion, with short-term loans falling by RMB40.1 billion and MLT loans and bill financing rising by RMB644.4 billion and RMB347.2 billion, respectively; and loans to non-banking financial institutions decreased by RMB35.8 billion.

At end-August, outstanding foreign currency loans stood at USD689 billion, down 16.7 percent year on year. In the first eight months, foreign currency loans dropped by USD52.6 billion, compared with a fall of USD85.9 billion in the same period last year. In August, foreign currency loans decreased by USD12.5 billion, moderating the decline in the same period last year by USD22.2 billion.

3. RMB deposits increased by RMB20.24 trillion in the first eight months

At end-August, the outstanding amount of RMB and foreign currency deposits was RMB284.47 trillion, up 10 percent year on year. RMB deposits recorded an outstanding amount of RMB278.76 trillion, rising by 10.5 percent year on year, the same pace as a month earlier but a deceleration of 0.8 percentage points from a year earlier.

In the first eight months, RMB deposits increased by RMB20.24 trillion, exceeding that in the same period last year by RMB115.8 billion. In August, RMB deposits saw an increase of RMB1.26 trillion, RMB13.2 billion lower than in the same period last year. Specifically, household deposits and deposits of non-financial enterprises rose by RMB787.7 billion and RMB889 billion, respectively, while fiscal deposits and deposits of non-banking financial institutions fell by RMB8.8 billion and RMB732.2 billion, respectively.

At end-August, the outstanding amount of foreign currency deposits was USD795.4 billion, down 12.7 percent year on year. In the first eight months, foreign currency deposits dropped by USD58.5 billion, moderating the decline in the same period last year by USD27.2 billion. In August, foreign currency deposits decreased by USD26.4 billion, compared with a fall of USD42.5 billion in the same period last year.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.71 percent and 1.76 percent respectively in August

In August, lending, cash bond and repo transactions in the interbank RMB market totaled RMB214 trillion, with the daily average increasing by 8 percent year on year to RMB9.3 trillion. Specifically, the average daily turnover of interbank lending fell by 24.9 percent year on year, while those of cash bond trading and pledged repo trading climbed by 8.4 percent and 11.7 percent year on year, respectively.

In August, the monthly weighted average interest rate for interbank lending stood at 1.71 percent, up 0.22 percentage points month on month and 0.48 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.76 percent, up 0.23 percentage points month on month and 0.52 percentage points year on year.

5. RMB cross-border settlement under the current account reached RMB1351.7 billion and RMB cross-border settlement of direct investment posted RMB714.1 billion in August

In August, RMB cross-border settlement under the current account reached RMB1351.7 billion, including RMB1046.2 billion in settlement of trade in goods and RMB305.5 billion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB714.1 billion, of which ODI and FDI posted RMB275.9 billion and RMB438.2 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.