Economy Jul 11

China money supply up 11% at end-June

The People's Bank of China says M2 was 213 trillion yuan ($30.42 trillion), up 11% over last year

China money supply up 11% at end-June
The People's Bank of China has released financial statistics for the first half of 2020. File photo by AFP.

(ATF) China's central bank released its financial statistics report on July 10, yesterday, for the first half of 2020. In the first half of the year, yuan loans increased by 12.09 trillion yuan, an increase of 2.42 trillion yuan year-on-year.

Broad money grew by 11.1% and 'narrow money' grew by 6.5%.

The balance of broad currency (M2) was 213.49 trillion yuan, an increase of 11.1% year-on-year, and the growth rate was the same as that of the end of last month and 2.6% higher than the same period of the previous year.

Narrow money (M1)

The balance of narrow currency (M1) was 60.43 trillion yuan, an increase of 6.5% year-on-year. The growth rate was 0.3 percentage points lower than that at the end of last month and 2.1 % higher than the same period last year.

The balance of currency in circulation (M0) was 7.95 trillion yuan, an increase of 9.5% year-on-year. In the first half of the year, net cash investment was 227 billion yuan.

Yuan loans and foreign currency loans

In the first half of the year, yuan loans increased by 12.09 trillion yuan, and foreign currency loans increased by US$77.4 billion.

At the end of June, the balance of domestic and foreign currency loans was 171.32 trillion yuan, an increase of 13% year-on-year. The growth rate was the same as that at the end of last month, 0.2 percentage points higher than the same period last year.

In the first half of the year, yuan loans increased by 12.09 trillion yuan, a rise of 2.42 trillion yuan year-on-year.

Different sectors

In terms of different sectors, household sector loans increased by 3.56 trillion yuan, of which short-term loans increased by 755.2 billion yuan, medium and long-term loans increased by 2.8 trillion yuan.

Corporate (institutional) business unit loans increased by 8.77 trillion yuan, of which short-term loans increased by 2.82 trillion yuan; medium and long-term loans increased by 4.86 trillion yuan; bill financing increased by 969.7 billion yuan; loans from non-banking financial institutions decreased by 277.5 billion yuan. In June, yuan loans increased by 1.81 trillion yuan, an increase of 147.4 billion yuan year-on-year.

Foreign currency loans

The balance of foreign currency loans was $864.3 billion, an increase of 5.6% year-on-year. Foreign currency loans increased by $77.4 billion in the first half of the year, an increase of $53.6 billion year-on-year. In June, foreign currency loans increased by $15.4 billion, a rise of $23.4 billion year-on-year.

In the first half of the year, yuan deposits increased by 14.55 trillion yuan, and foreign currency deposits increased by $20.6 billion.

Deposits

The balance of local and foreign currency deposits was 212.99 trillion yuan, a year-on-year increase of 10.5%. At the end of the month, the balance of yuan deposits was 207.48 trillion yuan, an increase of 10.6% year-on-year, and the growth rate was 0.2 and 2.2 percentage points higher than that at the end of last month and the same period of last year.

In the first half of the year, yuan deposits increased by 14.55 trillion yuan, a year-on-year increase of 4.5 trillion yuan. Among them, household deposits rose by 8.33 trillion yuan, non-financial enterprise deposits increased by 5.28 trillion yuan, fiscal deposits were up 438.4 billion yuan, and non-banking financial institution deposits decreased by 744.6 billion yuan. In June, RMB deposits increased by 2.9 trillion yuan, a rise of 637.1 billion yuan year-on-year.

At the end of June, the balance of foreign currency deposits was $778.4 billion, an increase of 2.4% year-on-year. Foreign currency deposits increased by $20.6 billion in the first half of the year, a year-on-year decrease of $11.9 billion. In June, foreign currency deposits increased by $31.1 billion, an increase of $21.2 billion year-on-year.

Interbank dealings

The monthly weighted average interest rate for interbank borrowing in the interbank yuan market in June was 1.85%, and the monthly weighted average interest rate for pledged bond repurchase was 1.89%.

In the first half of the year, the interbank yuan market saw a total of 669.11 trillion yuan in terms of lending, cash and repurchase, with an average daily turnover of 5.53 trillion yuan, and an average daily turnover of 16.7% year-on-year. The average daily turnover of interbank lending decreased by 5.2% year-on-year, while the average daily turnover of spot bonds increased by 26.7% year-on-year, and the average daily turnover of pledged repo increased by 19.3% year-on-year.

The weighted average interest rate for interbank lending in June was 1.85%, which was 0.6 and 0.15 percentage points higher than that of the previous month and the same period of the previous year; the weighted average interest rate of the pledged repo was 1.89%, which was 0.6 percentage points higher than that of the previous month and the same period of the previous year. 0.15 percentage points.

Reserves

The balance of national foreign exchange reserves was $3.11 trillion.

At the end of June, the balance of national foreign exchange reserves was $3.11 trillion. At the end of June, the yuan exchange rate was 7.0795 yuan per dollar.

The yuan settlement business of cross-border trade in the first half of the year was 3.08 trillion yuan, and the direct investment RMB settlement business was 1.72 trillion yuan.

In the first half of the year, cross-border goods trade, service trade and other current items, foreign direct investment, and foreign direct investment settled in yuan was 2.19 trillion yuan, 0.89 trillion yuan, 0.51 trillion yuan, and 1.21 trillion yuan, respectively.