In H1 2010, in accordance with the decisions of the CPC Central Committee and the State Council, the PBC continued to implement a moderately loose monetary policy. At the same time, it placed emphasis on enhancing the targeting and flexibility of macro regulation so as to provide active guidance on the reasonable and balanced injection of money and credit. Overall, the growth of money and credit dropped, the financial system performed stably and the upturn in the national economy was solidified.
1. Broad money rises by 18.5%
At end-June, broad money (M2) stood at RMB67.39 trillion, increasing 18.5% year on year, down 2.5 and 9.2 percentage points from the end of last month and end-2009 respectively. Narrow money (M1) registered RMB24.06 trillion, rising 24.6% year on year, down 5.3 and 7.8 percentage points from the end of last month and end-2009 respectively. Cash in circulation (M0) grew 15.7% year on year to RMB3.89 trillion. Net cash injection in H1 totaled RMB65.8 billion, as compared with the net withdrawal of RMB57.8 billion in the same period a year earlier.
2. RMB loans by financial institutions grow by RMB4.63 trillion
At end-June, outstanding RMB and foreign currency loans totaled RMB47.4 trillion, up 19.2% year on year. In H1 2010, RMB and foreign currency loans increased by RMB4.84 trillion, decelerating by RMB2.89 trillion year on year. Outstanding RMB loans registered RMB44.61 trillion, up 18.2% year on year, 3.3 and 13.5 percentage points lower than the end of last month and end-2009 respectively. RMB loans rose by RMB4.63 trillion in H1, down RMB2.74 trillion year on year. By sector, loans to households expanded by RMB1.74 trillion, with short-term loans and long and medium-term loans increasing by RMB532.9 billion and 1.21 trillion respectively; loans to non-financial enterprises and other sectors rose by RMB2.9 trillion: in breakdown, short-term loans and long and medium-term loans increased by RMB736.1 billion and 2.75 trillion respectively while bill financing decreased by RMB652.4 billion. In June, RMB loans rose by RMB603.4 billion, down RMB927 billion year on year. Outstanding foreign currency loans registered RMB411.7 billion, up 39.4% year on year. Foreign currency loans increased by USD32.3 billion in H1.
3. RMB deposits with financial institutions increase by RMB7.63 trillion
At end-June, outstanding RMB and foreign currency deposits totaled RMB68.85 trillion, up 18.6% year on year. RMB and foreign currency deposits recorded a growth of RMB7.65 trillion in H1, decelerating by RMB2.43 trillion year on year. Outstanding RMB deposits registered RMB67.41 trillion, rising 19% year on year, 2 and 9.2 percentage points lower than the end of last month and end-2009 respectively. RMB deposits rose by RMB7.63 trillion in H1, decelerating by RMB2.35 trillion year on year: In breakdown, household deposits, deposits of non-financial enterprises and fiscal deposits increased by RMB2.76 trillion, 2.94 trillion and 970.7 billion respectively. RMB deposits registered an increase of RMB1.33 trillion in June, down RMB664.7 billion year on year. Outstanding foreign currency deposits rose by 2.2% year on year to USD212.7 billion. In H1, foreign currency deposits rose by USD4 billion.
4. Interbank market transactions are brisk and market rates go up
In H1, RMB transactions in the interbank market amounted to RMB74.0 trillion. The average daily turnover registered RMB606.5 billion, increasing by 13.4% year on year.
In June, the monthly weighted average interbank lending rate stood at 2.31%, up 0.64 and 1.06 percentage points from the previous month and December of 2009 respectively. The monthly weighted average interest rate on bond pledged repo registered 2.38%, 0.67 and 1.12 percentage points higher than the previous month and December of 2009.
5. Official foreign exchange reserves increase by 15.1%
At end-June, China s foreign exchange reserves reached USD2.4543 trillion, registering an increase of 15.1% year on year. At end-June, the RMB exchange rate stood at RMB6.7909 per USD.
Sources and Uses of RMB and Foreign Currency Credit Fundsof Financial Institutions (By Sector) |
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|
June 2010 Unit: RMB100 million |
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Fund Source |
Fund Use |
||
|
I. Total Deposits |
688539.80 |
I. Total Loans |
474012.80 |
|
1.Household Deposits |
296174.31 |
1. Domestic Loans |
467321.45 |
|
(1) Demand Deposits and Temporary Deposits |
113351.54 |
(1) Loans to Households |
101303.54 |
|
(2) Time Deposits and Margin Deposits |
182822.78 |
Consumer Loans |
67427.21 |
|
2.Deposits of Non-Financial Enterprises |
289520.55 |
Short-Term Consumer Loans |
7790.20 |
|
3. Deposits of Government Agencies and Organizations |
57416.67 |
Long and Medium Term Consumer Loans |
59637.00 |
|
4. Fiscal Deposits |
32116.36 |
Business Loans |
33876.33 |
|
5. Other Deposits |
13311.91 |
Short-Term Business Loans |
22843.58 |
|
II. Liabilities to International Financial Institutions |
719.09 |
Long and Medium-Term Business Loans |
11032.75 |
|
III. Others |
-116149.28 |
(2) Loans to Non-Financial Enterprises and Other Sectors |
366017.92 |
|
Short-Term Loans and Bill Financing |
146089.08 |
||
|
Short-Term Loans |
128717.48 |
||
|
Bill Financing |
17371.60 |
||
|
Long and Medium-Term Loans |
203718.45 |
||
|
Other Loans |
16210.39 |
||
|
2. Overseas Loans |
6691.34 |
||
|
II. Portfolio and Investment |
96756.43 |
||
|
III. Purchase of Gold |
669.84 |
||
|
IV. Assets in International Financial Institutions |
1670.55 |
||
|
Total |
573109.61 |
Total |
573109.61 |
|
Notes: 1. Institutions referred to in this table include the People's Bank of China, depository financial institutions in the banking sector, trust and investment companies, leasing companies and auto finance companies. 2. Household deposits mainly includes savings deposits of residents and domestic deposits of individuals. 3. Since Jan. 1, 2010, the former deposits of non-financial companies has been renamed deposits of non-financial enterprises. The item now covers a smaller range statistically as deposits of government agencies and organizations and army deposits, formerly under the item, have been taken out to list separately as deposits of government agencies and organizations. Consequently, deposits of non-financial enterprises and deposits of government agencies and organizations in the tables of 2010 are not comparable to the same periods in past years. 4. Other deposits includes insurance companies deposits in the banking sector and non-residents deposits. 5. Loans to households includes domestic consumer loans and business loans to individuals and households. Loans to non-financial enterprises and other sectors includes domestic loans to non-financial enterprises and institutions. Other loans includes financing for enterprises in forms other than lending and bill financing. |
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|
Sources and Uses of RMB and Foreign Currency Credit Funds of Financial Institutions |
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|
June 2010 Unit: RMB100 million |
|||
Fund Source |
Fund Use |
||
|
I. Total Deposits |
688539.80 |
I. Total Loans |
474012.80 |
|
1.Demand Deposits and Time Deposits of Enterprises |
234540.45 |
1.Short-Term Loans |
159525.65 |
|
(1) Demand Deposits |
152232.99 |
2.Long and Medium-Term Loans |
280897.71 |
|
(2) Time Deposits |
82307.47 |
3.Entrusted Loans |
5481.90 |
|
2. Savings Deposits |
292049.69 |
4. Other Loans |
10553.29 |
|
(1) Demand Deposits |
114348.52 |
5. Bill Financing |
17371.60 |
|
(2) Time Deposits |
177701.17 |
6. Advances |
182.64 |
|
3.Entrusted Deposits |
6106.37 |
II. Portfolio and Investment |
96756.43 |
|
4.Other Deposits |
155843.29 |
III. Purchase of Gold |
669.84 |
|
II. Liabilities to International Financial Institutions |
719.09 |
IV. Assets in International Financial Institutions |
1670.55 |
|
III. Others |
-116149.28 |
||
|
Total |
573109.61 |
Total |
573109.61 |
|
Notes: 1.Institutions referred to in this table include the People's Bank of China, depository financial institutions in the banking sector, trust and investment companies, leasing companies and auto finance companies. 2.Depository financial institutions in the banking sector include banks, credit unions and finance companies. 3.Since 2010, the former trust deposits and trust loans have been incorporated respectively into entrusted deposits and entrusted loans. 4.Applied in this table are end-period spot foreign exchange rates. |
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|
Sources and Uses of RMB Credit Funds of Financial Institutions (By Sector) |
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|
June 2010 Unit: RMB100 million |
|||
Fund Source |
Fund Use |
Balance |
|
|
I. Total Deposits |
674097.88 |
I. Total Loans |
446052.20 |
|
1.Household Deposits |
292206.83 |
1. Domestic Loans |
445955.90 |
|
(1) Demand Deposits and Temporary Deposits |
112035.55 |
(1) Loans to Households |
101266.05 |
|
(2) Time Deposits and Margin Deposits |
180171.28 |
Consumer Loans |
67389.72 |
|
2. Deposits of Non-Financial Enterprises |
280935.08 |
Short-Term Consumer Loans |
7764.00 |
|
(1) Demand Deposits and Temporary Deposits |
169841.47 |
Long and Medium-Term Consumer Loans |
59625.72 |
|
(2) Time Deposits and Margin Deposits |
111093.62 |
Business Loans |
33876.33 |
|
3. Deposits of Government Agencies and Organizations |
57416.67 |
Short-Term Business Loans |
22843.58 |
|
4.Fiscal Deposits |
32116.36 |
Long and Medium-Term Business Loans |
11032.75 |
|
5.Other Deposits |
11422.95 |
(2) Loans to Non-Financial Enterprises and Other Sectors |
344689.85 |
|
II. Financial Bonds |
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