1. Broad money rose by 7 percent

At end-May, broad money supply (M2) stood at RMB301.85 trillion, increasing by 7 percent year on year. Narrow money supply (M1), at RMB64.68 trillion, fell by 4.2 percent year on year. The amount of currency in circulation (M0) was RMB11.71 trillion, an increase of 11.7 percent year on year. The first five months of the year saw a net money injection of RMB361.8 billion.

2. RMB loans grew by RMB11.14 trillion in the first five months

At end-May, outstanding RMB and foreign currency loans totaled RMB253.31 trillion, up 8.9 percent year on year. Outstanding RMB loans stood at RMB248.73 trillion, registering a year-on-year growth of 9.3 percent.

In the first five months, new RMB loans totaled RMB11.14 trillion. By sector, household loans increased by RMB889.1 billion, with short-term loans and medium and long-term (MLT) loans rising by RMB29.3 billion and RMB859.8 billion, respectively; loans to enterprises and public institutions grew by RMB9.37 trillion, with short-term loans and MLT loans increasing by RMB2.44 trillion and RMB7.11 trillion, respectively, and bill financing decreasing by RMB304.7 billion; and loans to non-banking financial institutions climbed by RMB530.6 billion.

At end-May, outstanding foreign currency loans stood at USD644.2 billion, down 10.7 percent year on year. The first five months saw a decline of USD12.2 billion in foreign currency loans.

3. RMB deposits increased by RMB9 trillion in the first five months

At end-May, the outstanding amount of RMB and foreign currency deposits was RMB299.18 trillion, up 6.5 percent year on year. RMB deposits recorded an outstanding amount of RMB293.26 trillion, rising by 6.7 percent year on year.

In the first five months, RMB deposits increased by RMB9 trillion. Specifically, household deposits, fiscal deposits and deposits of non-banking financial institutions rose by RMB7.13 trillion, RMB575.9 billion and RMB2.39 trillion, respectively, while deposits of non-financial enterprises declined by RMB2.45 trillion.

At end-May, the outstanding amount of foreign currency deposits was USD832.3 billion, down 2.3 percent year on year. The first five months saw an increase of USD34.4 billion in foreign currency deposits.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.85 percent and 1.82 percent respectively in May

In May, lending, cash bond and repo transactions in the interbank RMB market totaled RMB160.78 trillion, with the daily average decreasing by 18.3 percent year on year to RMB7.66 trillion. Specifically, the average daily turnovers of interbank lending and pledged repo trading fell by 46.6 percent and 22.8 percent year on year, respectively, while that of cash bond trading rose by 23.5 percent year on year.

In May, the monthly weighted average interest rate for interbank lending stood at 1.85 percent, down 0.02 percentage points month on month but up 0.35 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.82 percent, down 0.04 percentage points month on month but up 0.27 percentage points year on year.

5. RMB cross-border settlement under the current account reached RMB1.3 trillion and RMB cross-border settlement of direct investment posted RMB0.7 trillion in May

In May, RMB cross-border settlement under the current account reached RMB1.3 trillion, including RMB0.95 trillion in settlement of trade in goods and RMB0.35 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB0.7 trillion, of which ODI and FDI posted RMB0.25 trillion and RMB0.45 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.