Money supply continues to accelerate. At end-July 2009, broad money (M2) stood at RMB57.3 trillion, increasing 28.42% year on year, up 10.6 percentage points from the end of last year but down 0.03 percentage points from the end of last month. Narrow money (M1) registered RMB19.59 trillion, rising 26.37% year on year, up 1.6 percentage points from the end of last month. Cash in circulation (M0) grew 11.59% year on year to RMB3.42 trillion. Net cash injection from January to July totaled RMB2.5 billion, down RMB54.1 billion year on year.
Outstanding loans continue to rise. At end-July, outstanding RMB loans reached RMB38.1 trillion, up 33.9% year on year, 15.17 percentage points higher than the end of last year but 0.54 percentage points lower than the end of last month. From January to July, RMB loans surged by RMB7.73 trillion, accelerating by RMB4.
89 trillion year on year. In July, RMB loans increased by RMB355.9 billion. By sector, loans to households rose by RMB236.5 billion, with short-term loans and long and medium-term loans increasing by RMB47.8 billion and 188.7 billion respectively. Loans to non-financial companies and other sectors grew by RMB119.
3 billion. In breakdown, short-term loans were down RMB58.1 billion, long and medium-term loans up RMB350.9 billion and bill financing down RMB198.2 billion. At end-July, outstanding foreign currency loans of financial institutions totaled USD306.4 billion, up 12.33% year on year. Foreign currency loans increased by USD11 billion in the month.
At end-July, outstanding RMB and foreign currency loans of financial institutions added up to RMB40.19 trillion, rising 32.58% year on year. In the January-July period, RMB and foreign currency loans increased by RMB8.15 trillion, accelerating by RMB5.05 trillion year on year. In July, RMB and foreign currency loans saw a RMB431.2 billion rise.
RMB deposits continue to increase. At end-July, outstanding RMB deposits of financial institutions increased 28.54% year on year to RMB57.03 trillion, up 8.81 percentage points year on year but down 0.47 percentage points month on month. From January to July, RMB deposits grew by RMB10.38 trillion, up RMB4.
95 trillion from the same period last year. RMB deposits registered an increase of RMB399.3 billion in the month. By sector, household deposits declined by RMB19.2 billion; deposits of non-financial companies and fiscal deposits increased by RMB24.3 billion and 373.6 billion respectively. In deposits of non-financial companies, those of enterprises saw a RMB45 billion slide.
At end-July, outstanding foreign currency deposits of financial institutions rose 12.21% year on year to USD207.5 billion. Foreign currency deposits sank by USD700 million in the month.
Outstanding RMB and foreign currency deposits of financial institutions totaled RMB58.45 trillion with a year-on-year growth of 28.08%. In the January-July period, RMB and foreign currency deposits rose by RMB10.48 trillion, accelerating by RMB4.96 trillion. RMB and foreign currency deposits increased by RMB394.8 billion in the month.
RMB transactions in the inter-bank lending market are brisk and market rates go up. In July 2009, RMB transactions in the inter-bank lending market amounted to RMB13.02 trillion. The average daily turnover reached RMB566.1 billion, increasing by 40.4%, or RMB162.9 billion, year on year.
In July, the monthly weighted interest rate for inter-bank lending averaged 1.32%, up 0.41 percentage points from last month but down 1.37 percentage points from the same period last year. The monthly weighted interest rate for bond pledged repo averaged 1.35%, up 0.44 percentage points month on month but down 1.41 percentage points year on year.
