1. Broad money rose by 9.7 percent

At end-December, broad money supply (M2) stood at RMB292.27 trillion, increasing by 9.7 percent year on year. Narrow money supply (M1), at RMB68.05 trillion, rose by 1.3 percent year on year. The amount of currency in circulation (M0) was RMB11.34 trillion, an increase of 8.3 percent year on year. The full year saw a net money injection of RMB881.5 billion.

2. RMB loans grew by RMB22.75 trillion for the full year

At end-December, outstanding RMB and foreign currency loans totaled RMB242.24 trillion, up 10.1 percent year on year. Outstanding RMB loans stood at RMB237.59 trillion, registering a year-on-year growth of 10.6 percent.

New RMB loans totaled RMB22.75 trillion for the full year, increasing by RMB1.31 trillion from a year earlier. By sector, household loans grew by RMB4.33 trillion, with short-term loans and medium and long-term (MLT) loans rising by RMB1.78 trillion and RMB2.55 trillion, respectively; loans to enterprises and public institutions increased by RMB17.91 trillion, with short-term loans, MLT loans and bill financing rising by RMB3.92 trillion, RMB13.57 trillion and RMB341 billion, respectively; and loans to non-banking financial institutions climbed by RMB192.8 billion. In December, new RMB loans reached RMB1.17 trillion, declining by RMB240.1 billion year on year.

At end-December, outstanding foreign currency loans stood at USD656.4 billion, down 10.7 percent year on year. Foreign currency loans dropped by USD85.2 billion for the full year, moderating the decline for the previous year by USD92.7 billion. In December, foreign currency loans fell by USD12.7 billion, USD21.5 billion smaller than the slide recorded a year earlier.

3. RMB deposits increased by RMB25.74 trillion for the full year

At end-December, the outstanding amount of RMB and foreign currency deposits was RMB289.91 trillion, up 9.6 percent year on year. RMB deposits recorded an outstanding amount of RMB284.26 trillion, rising by 10 percent year on year.

RMB deposits increased by RMB25.74 trillion for the full year, RMB510.1 billion lower compared with the previous year. Specifically, household deposits, deposits of non-financial enterprises, fiscal deposits and deposits of non-banking financial institutions rose by RMB16.67 trillion, RMB4.22 trillion, RMB792.4 billion and RMB1.64 trillion, respectively. In December, RMB deposits grew by RMB86.8 billion, a decrease of RMB640.2 billion from that recorded a year earlier.

At end-December, the outstanding amount of foreign currency deposits was USD797.8 billion, down 6.6 percent year on year. Foreign currency deposits dropped by USD56.1 billion for the full year, compared with a fall of USD143 billion for the previous year. In December, foreign currency deposits rose by USD4.7 billion, a further increase of USD12.9 billion from a year earlier.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.78 percent and 1.9 percent respectively in December

Lending, cash bond and repo transactions in the interbank RMB market totaled RMB2124.49 trillion for the full year, with the daily average increasing by 18.1 percent year on year to RMB8.5 trillion. Specifically, the average daily turnover of interbank lending fell by 2.6 percent year on year, while those of cash bond trading and pledged repo trading climbed by 13.3 percent and 21.4 percent year on year, respectively.

In December, the monthly weighted average interest rate for interbank lending stood at 1.78 percent, down 0.11 percentage points month on month but up 0.52 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.9 percent, down 0.08 percentage points month on month but up 0.49 percentage points year on year.

5. Official foreign exchange reserves stood at USD3.24 trillion

At end-December, China's foreign exchange reserves stood at USD3.24 trillion, and the USD/CNY exchange rate was 7.0827.

6. RMB cross-border settlement under the current account reached RMB14.03 trillion and RMB cross-border settlement of direct investment posted RMB7.6 trillion for the year 2023

In 2023, RMB cross-border settlement under the current account reached RMB14.03 trillion, including RMB10.69 trillion in settlement of trade in goods and RMB3.34 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB7.6 trillion, of which ODI and FDI posted RMB2.6 trillion and RMB5 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.