1. Broad money rose by 8.3 percent
At end-June, broad money supply (M2) stood at RMB330.29 trillion, rising by 8.3 percent year on year. Narrow money supply (M1), at RMB113.95 trillion, grew by 4.6 percent year on year. The amount of currency in circulation (M0) was RMB13.18 trillion, an increase of 12 percent year on year. The first half of the year saw a net money injection of RMB363.3 billion.
2. RMB loans grew by RMB12.92 trillion in H1
At end-June, outstanding RMB and foreign currency loans totaled RMB272.57 trillion, up 6.8 percent year on year. Outstanding RMB loans stood at RMB268.56 trillion, registering a year-on-year growth of 7.1 percent.
In the first half of the year, RMB loans expanded by RMB12.92 trillion. By sector, household loans increased by RMB1.17 trillion, with short-term loans falling by RMB300 million and medium and long-term (MLT) loans rising by RMB1.17 trillion; loans to enterprises and public institutions grew by RMB11.57 trillion, with short-term loans and MLT loans increasing by RMB4.3 trillion and RMB7.17 trillion, respectively, and bill financing falling by RMB46.4 billion; and loans to non-banking financial institutions rose by RMB33.1 billion.
At end-June, outstanding foreign currency loans stood at USD560.9 billion, down 10.6 percent year on year. The first half of the year saw a rise of USD18.8 billion in foreign currency loans.
3. RMB deposits increased by RMB17.94 trillion in H1
At end-June, the outstanding amount of RMB and foreign currency deposits was RMB327.46 trillion, up 8.6 percent year on year. RMB deposits recorded an outstanding amount of RMB320.17 trillion, rising by 8.3 percent year on year.
In the first half of the year, RMB deposits increased by RMB17.94 trillion. Specifically, household deposits, deposits of non-financial enterprises, fiscal deposits and deposits of non-banking financial institutions rose by RMB10.77 trillion, RMB1.77 trillion, RMB1.25 trillion and RMB2.55 trillion, respectively.
At end-June, the outstanding amount of foreign currency deposits was USD1.02 trillion, up 21.7 percent year on year. The first half of the year saw an increase of USD165.5 billion in foreign currency deposits.
4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos in June stood at 1.46 percent and 1.5 percent respectively
In the first half of the year, lending, cash bond and repo transactions in the interbank RMB market totaled RMB974.04 trillion, with the daily average declining by 4.4 percent year on year to RMB8.12 trillion. Specifically, the average daily turnovers of interbank lending, cash bond trading and pledged repo trading dropped by 24.7 percent, 2.9 percent and 3.6 percent year on year, respectively.
The monthly weighted average interest rate for interbank lending in June stood at 1.46 percent, down 0.09 percentage points month on month and 0.41 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.5 percent, down 0.06 percentage points month on month and 0.39 percentage points year on year.
5. Official foreign exchange reserves stood at USD3.32 trillion
At end-June, China’s foreign exchange reserves stood at USD3.32 trillion, and the USD/CNY exchange rate was 7.1586.
6. RMB cross-border settlement under the current account reached RMB8.3 trillion and RMB cross-border settlement of direct investment posted RMB4.11 trillion in H1
In the first half of the year, RMB cross-border settlement under the current account reached RMB8.3 trillion, including RMB6.38 trillion in settlement of trade in goods and RMB1.92 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB4.11 trillion, of which ODI and FDI posted RMB1.46 trillion and RMB2.65 trillion, respectively.
Notes:
1. Data for the current period are preliminary.
2. “Loans to enterprises and public institutions” in this report refers to loans to non-financial enterprises, government agencies and organizations.
3. Starting from January 2023, the People’s Bank of China (PBOC) 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.
4. Starting from January 2025 statistics, the PBOC has revised the measurement of narrow money supply (M1). The revised M1 consists of currency in circulation (M0), corporate demand deposits, personal demand deposits, and customers’ reserve funds with non-bank payment institutions. Adjusted accordingly on a comparable basis, the month-end M1 balances and growth rates of 2024 are shown below.
Jan. 2024 |
Feb. 2024 |
Mar. 2024 |
Apr. 2024 |
May 2024 |
Jun. 2024 |
|
M1 Balances (RMB100 million) |
1120120 |
1093158 |
1117433 |
1075084 |
1064391 |
1089170 |
YOY Growth Rates |
3.3% |
2.6% |
2.3% |
0.6% |
-0.8% |
-1.7% |
Jul. 2024 |
Aug. 2024 |
Sept. 2024 |
Oct. 2024 |
Nov. 2024 |
Dec. 2024 |
|
M1 Balances (RMB100 million) |
1051800 |
1049684 |
155410 |
1054884 |
1076379 |
1113069 |
YOY Growth Rates |
-2.6% |
-3.0% |
-3.3% |
-2.3% |
-0.7% |
1.2% |