1. Broad money rose by 6.2 percent

At end-June, broad money supply (M2) stood at RMB305.02 trillion, rising by 6.2 percent year on year. Narrow money supply (M1), at RMB66.06 trillion, fell by 5 percent year on year. The amount of currency in circulation (M0) was RMB11.77 trillion, an increase of 11.7 percent year on year. The first half of the year saw a net money injection of RMB429.2 billion.

2. RMB loans grew by RMB13.27 trillion in H1

At end-June, outstanding RMB and foreign currency loans totaled RMB255.32 trillion, up 8.3 percent year on year. Outstanding RMB loans stood at RMB250.85 trillion, registering a year-on-year growth of 8.8 percent.

In the first half of the year, new RMB loans totaled RMB13.27 trillion. By sector, household loans increased by RMB1.46 trillion, with short-term loans and medium and long-term (MLT) loans rising by RMB276.4 billion and RMB1.18 trillion, respectively; loans to enterprises and public institutions grew by RMB11 trillion, with short-term loans and MLT loans increasing by RMB3.11 trillion and RMB8.08 trillion, respectively, and bill financing decreasing by RMB344 billion; and loans to non-banking financial institutions climbed by RMB388.9 billion.

At end-June, outstanding foreign currency loans stood at USD627.2 billion, down 12 percent year on year. The first half of the year saw a decline of USD29.2 billion in foreign currency loans.

3. RMB deposits increased by RMB11.46 trillion in H1

At end-June, the outstanding amount of RMB and foreign currency deposits was RMB301.68 trillion, up 6 percent year on year. RMB deposits recorded an outstanding amount of RMB295.72 trillion, rising by 6.1 percent year on year.

In the first half of the year, RMB deposits increased by RMB11.46 trillion. Specifically, household deposits and deposits of non-banking financial institutions rose by RMB9.27 trillion and RMB2.21 trillion, respectively, while deposits of non-financial enterprises and fiscal deposits dropped by RMB1.45 trillion and RMB243.4 billion, respectively.

At end-June, the outstanding amount of foreign currency deposits was USD836.5 billion, down 0.1 percent year on year. The first half of the year saw an increase of USD38.7 billion in foreign currency deposits.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.87 percent and 1.89 percent respectively in June

In the first half of the year, lending, cash bond and repo transactions in the interbank RMB market totaled RMB1044.8 trillion, with the daily average increasing by 3 percent year on year to RMB8.49 trillion. Specifically, the average daily turnovers of interbank lending and pledged repo trading fell by 30.8 percent and 0.3 percent year on year, respectively, while that of cash bond trading rose by 37.9 percent year on year.

In June, the monthly weighted average interest rate for interbank lending stood at 1.87 percent, up 0.02 percentage points month on month and 0.3 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.89 percent, up 0.07 percentage points month on month and 0.22 percentage points year on year.

5. Official foreign exchange reserves stood at USD3.22 trillion

At end-June, China’s foreign exchange reserves stood at USD3.22 trillion, and the USD/CNY exchange rate was 7.1268.

6. RMB cross-border settlement under the current account reached RMB7.71 trillion and RMB cross-border settlement of direct investment posted RMB4.13 trillion in H1

In the first half of the year, RMB cross-border settlement under the current account reached RMB7.71 trillion, including RMB5.89 trillion in settlement of trade in goods and RMB1.82 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB4.13 trillion, of which ODI and FDI posted RMB1.43 trillion and RMB2.7 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.