Renminbi Loans Rise 16.17T Yuan in 2018, M2 Money Supply Expands 8.1% YoY

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The Chinese central bank has just released data on credit and money supply growth for 2018.

Data from the People’s Bank of China (PBOC) indicates that the M2 money supply balance was 182.67 trillion yuan as of the end of December, for YoY growth of 8.1%, roughly on par with growth for the same period last year

The M1 money supply balance was 55.17 trillion yuan, for YoY growth of 1.5%, and a deceleration of 10.3 percentage points compared to the same period last year.

The M0 balance was 7.32 trillion yuan, for YoY growth of 3.6%, and a full year net cash injection of 256.3 billion yuan.

As of the end of December the domestic and foreign currency loan balance was 141.75 trillion yuan for YoY growth of 12.9%.

The renminbi loan balance at the end of the month was 136.3 trillion yuan, for YoY growth of 13.5%, 0.4 percentage points ahead of the previous month and 0.8 percentage points ahead of the same period last year.

Renminbi loans increased by 16.17 trillion yuan for full year 2018, 2.64 trillion yuan ahead of the increase for the previous year.

Lending to the household sector increased by 7.36 trillion yuan, with short-term loans increasing by 2.41 trillion yuan and medium and long-term loans increase 4.95 trillion yuan.

Loans extended to  non-financial enterprises and organisations increased by 8.31 trillion yuan, including 498.2 billion yuan in short-term loans, 5.6 trillion yuan in medium and long-term loans, and 1.89 trillion yuan in notes financing.

Loans to non-banking sector financial institutions increased 440.1 billion yuan.

As of the end of December China’s foreign currency loan balance was USD$794.8 billion, for a YoY decline of 5.2%.

The domestic and foreign currency deposit balance was 182.52 trillion yuan as of the end of December, for a YoY rise of 7.8%.

The renminbi deposit balance was 177.52 trillion yuan, for YoY growth of 8.2%, 0.8 percentage points ahead of the same period last year.

The full year renminbi deposit increase was 13.4 trillion yuan, for a YoY contraction of 107.1 billion yuan.

Household deposits increased 7.2 trillion yuan, non-financial enterprise deposits increased by 2.16 trillion yuan, and fiscal deposits fell by 59.6 billion yuan, while non-banking sector financial institution deposits increased by 1.96 trillion yuan.

As of the end of December the foreign currency deposit balance was $727.5 billion, for a YoY decline of 8%.

Foreign reserves stood at $3.07 trillion at the end of 2018, while the year saw 5.11 trillion yuan in cross-border trade renminbi settlement operations, and direct investment renminbi settlement operations of 2.66 trillion yuan

In 2018 cross-border goods trade worth 3.66 trillion yuan used the renminbi for settlement, while for services trade and other current accounts the figure was 1.45 trillion yuan and for outbound foreign direct investment and inbound foreign direct investment the readings were  804.81 billion yuan and 1.86 trillion yuan.

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