Money supply rose 29.42%. At end-October 2009, broad money (M2) stood at RMB58.62 trillion, increasing 29.42% year on year, up 11.60 and 0.12 percentage points from the end of last year and the end of last month respectively. Narrow money (M1) registered RMB20.75 trillion, rising 32.03% year on year, up 2.53 percentage points from the end of last month. Cash in circulation (M0) grew 14.09% year on year to RMB3.57 trillion. Net cash injection from January to October totaled RMB151.1 billion, up RMB31.4 billion year on year.
RMB and foreign currency loans rose by RMB363.9 billion in the month, with the former increasing RMB253 billion and the latter adding USD16.3 billion. At end-October, outstanding RMB and foreign currency loans of financial institutions totaled RMB41.75 trillion, up 34.52% year on year. In the January-October period, RMB and foreign currency loans saw a RMB9.71 trillion growth, an acceleration of RMB5.89 trillion year on year. In October, RMB and foreign currency loans rose by RMB363.9 billion. Outstanding RMB loans of financial institutions reached RMB39.29 trillion, up 34.19% year on year, 15.46 and 0.03 percentage points higher than the end of last year and the end of last month respectively. From January to October, RMB loans rose by RMB8.92 trillion, accelerating by RMB5.26 trillion year on year. In October, RMB loans increased by RMB253 billion. By sector, loans to households rose by RMB157.6 billion, with short-term loans and long and medium-term loans increasing by RMB19 billion and 138.6 billion respectively. Loans to non-financial companies and other sectors grew by RMB95.4 billion. In breakdown, short-term loans and bill financing were down RMB10.8 billion and 203.9 billion respectively while long and medium-term loans were up RMB272.5 billion. At end-October, outstanding foreign currency loans of financial institutions registered USD359.6 billion, up 40.04% year on year. Foreign currency loans increased by USD16.3 billion in the month.
RMB and foreign currency deposits increased by RMB291.5 billion in the month, with the former rising RMB289.7 billion and the latter contributing a growth of USD300 million. At end-October, outstanding RMB and foreign currency deposits of financial institutions totaled RMB60.08 trillion with a year-on-year growth of 27.46%. In the January-October period, RMB and foreign currency deposits rose by RMB12.12 trillion, accelerating by RMB5.08 trillion year on year. RMB and foreign currency deposits increased by RMB291.5 billion in the month. Outstanding RMB deposits of financial institutions increased 28.05% year on year to RMB58.69 trillion, up 8.32 percentage points year on year but down 0.32 percentage points month on month. From January to October, RMB deposits grew by RMB12.04 trillion, up RMB5.14 trillion from the same period last year. RMB deposits registered an increase of RMB289.7 billion in the month. By sector, household deposits declined by RMB250.7 billion while deposits of non-financial companies and fiscal deposits increased by RMB210.6 billion and 316.8 billion respectively. In deposits of non-financial companies, those of enterprises grew by RMB70 billion. At end-October, outstanding foreign currency deposits rose 6.64% year on year to USD203.5 billion. Foreign currency deposits were up USD300 million in the month.
RMB transactions in the inter-bank lending market were stable and market rates rose slightly. In October 2009, RMB transactions in the inter-bank lending market amounted to RMB8.04 trillion. The average daily turnover posted RMB472.9 billion, falling 0.38%, or RMB1.8 billion, year on year.
In October, the monthly weighted interest rate for inter-bank lending averaged 1.30%, up 0.03 percentage points from last month. The monthly weighted interest rate for bond pledged repo averaged 1.30%, up 0.02 percentage points month on month.
