1. Broad money rose by 6.3 percent

At end-July, broad money supply (M2) stood at RMB303.31 trillion, rising by 6.3 percent year on year. Narrow money supply (M1), at RMB63.23 trillion, fell by 6.6 percent year on year. The amount of currency in circulation (M0) was RMB11.88 trillion, an increase of 12 percent year on year. The first seven months saw a net money injection of RMB539.6 billion.

2. RMB loans grew by RMB13.53 trillion in the first seven months

At end-July, outstanding RMB and foreign currency loans totaled RMB255.43 trillion, up 8.3 percent year on year. Outstanding RMB loans stood at RMB251.11 trillion, registering a year-on-year growth of 8.7 percent.

In the first seven months, new RMB loans totaled RMB13.53 trillion. By sector, household loans increased by RMB1.25 trillion, with short-term loans and medium and long-term (MLT) loans rising by RMB60.8 billion and RMB1.19 trillion, respectively; loans to enterprises and public institutions grew by RMB11.13 trillion, with short-term loans, MLT loans and bill financing increasing by RMB2.56 trillion, RMB8.21 trillion and RMB214.6 billion, respectively; and loans to non-banking financial institutions climbed by RMB594.6 billion.

At end-July, outstanding foreign currency loans stood at USD604.7 billion, down 13.8 percent year on year. The first seven months saw a decline of USD51.7 billion in foreign currency loans.

3. RMB deposits increased by RMB10.66 trillion in the first seven months

At end-July, the outstanding amount of RMB and foreign currency deposits was RMB300.88 trillion, up 6.2 percent year on year. RMB deposits recorded an outstanding amount of RMB294.92 trillion, rising by 6.3 percent year on year.

In the first seven months, RMB deposits increased by RMB10.66 trillion. Specifically, household deposits, fiscal deposits and deposits of non-banking financial institutions rose by RMB8.94 trillion, RMB401.9 billion and RMB2.96 trillion, respectively, while deposits of non-financial enterprises dropped by RMB3.23 trillion.

At end-July, the outstanding amount of foreign currency deposits was USD834.7 billion, up 1.6 percent year on year. The first seven months saw an increase of USD36.9 billion in foreign currency deposits.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.81 percent and 1.82 percent respectively in July

In July, lending, cash bond and repo transactions in the interbank RMB market totaled RMB193.71 trillion, with the daily average decreasing by 15.6 percent year on year to RMB8.42 trillion. Specifically, the average daily turnovers of interbank lending and pledged repo trading fell by 40 percent and 19.6 percent year on year, respectively, while that of cash bond trading rose by 21 percent year on year.

In July, the monthly weighted average interest rate for interbank lending stood at 1.81 percent, down 0.06 percentage points month on month but up 0.32 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.82 percent, down 0.07 percentage points month on month but up 0.29 percentage points year on year.

5. RMB cross-border settlement under the current account reached RMB1.42 trillion and RMB cross-border settlement of direct investment posted RMB0.61 trillion in July

In July, RMB cross-border settlement under the current account reached RMB1.42 trillion, including RMB1.04 trillion in settlement of trade in goods and RMB0.38 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB0.61 trillion, of which ODI and FDI posted RMB0.23  trillion and RMB0.38 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.