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PBOC Releases Financial Data for August, M2 Money Supply up 10.4% YoY

The latest raft of financial data released by the Chinese central bank points to easing growth in the M2 money supply in August.

Data released by the People’s Bank of China (PBOC) indicates that the broad M2 money supply balance stood at 213.68 trillion yuan as of the end of August, for a YoY rise of 10.4%.

The growth rate for August marks a deceleration of 0.3 percentage points compared to the end of July, and is 2.2 percentage points ahead of the figure for the same period last year.

The narrow M1 money supply balance stood at 60.13 trillion yuan at the end of August, for a YoY rise of 8%, and an acceleration of 1.1 percentage points compared to the end of July, and 4.6 percentage points compared to the same period last year.

The M0 money supply balance stood at 8 trillion yuan as of the end of August, for a YoY rise of 9.4%, and a net cash injection that month of 17.5 billion yuan.

As of the end of August the domestic and foreign currency loan balance stood at 173.66 trillion yuan, for a YoY rise of 12.8%.

The renminbi loan balance was 167.47 trillion yuan, for a YoY rise of 13%, for growth on par with the previous month, and 0.6 percentage points ahead of the same period last year.

In August renminbi loans increased by 1.28 trillion yuan, 69.4 billion yuan ahead of the figure for the same period last year.

Household loans increased by 841.5 billion yuan, including 284.4 billion yuan in short-term loans and 557.1 billion yuan in medium and long-term loans.

Entity loans increased by 579.7 billion yuan, including 4.7 billion yuan in short-term loans and 725.2 billion yuan in medium and long-term loans.

Bills financing fell by 167.6 billion yuan, while non-banking sector financial institution loans fell 147.4 billion yuan.

As of the end of August the foreign currency loan balance was USD$902.8 billion, for a YoY rise of 12.2%. Foreign currency loans increased $19.3 billion in August, $20.7 billion ahead of the figure for the same period last year.

As of the end of August the domestic and foreign currency deposit balance stood at 215.12 trillion yuan, for a YoY rise of 10.2%.

The renminbi deposit balance was 209.49 trillion yuan, for a YoY rise of 10.3%, on par with the growth rate for the previous month, and 1.9 percentage points ahead of the growth rate for the same period last year.

In August renminbi deposits increased by 1.94 trillion yuan, 131.7 billion yuan ahead of the figure for the same period last year.

Household deposits increased 397.3 billion yuan, non-financial enterprise deposits increased 749.1 billion yuan, and fiscal deposits increased 533.9 billion yuan, while non-banking sector financial institution deposits decreased 261.2 billion yuan.

As of the end of August the foreign currency deposit balance stood at $819.5 billion, for a YoY rise of 12.1%. Foreign currency deposits increased by $25.8 billion in August, $40.1 billion ahead of the figure for the same period last year.

In August interbank renminbi transactions totalled 117.86 trillion yuan, for a daily average transaction volume of 5.61 trillion yuan, and a YoY rise of 20%.

The interbank lending daily average transaction volume increased 4.4% YoY, the spot bond daily average transaction volume increased 18.8% YoY, and the pledge-style repo daily transaction volume increased 23.2%.

In August the interbank lending average weighted interest rate was 2.04%, 0.14 percentage points ahead of the figure for the previous month, and 0.61 percentage points lower than the same period last year.

The pledge-style repo average weighted interest rate was 2.06%, for an increase of 0.15 percentage points compared to the preceding month, and 0.59 percentage points less than the same period last year.

In August the cross-border goods trade settled in renminbi was 383.4 billion yuan, while for services trade and other current accounts the figure was 155.1 billion yuan, for outbound direct investment it was 66.6 billion yuan, and for inbound foreign direct investment it was 227.2 billion yuan.

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