Renminbi Loans Increase by Record Breaking 3.34 Trillion Yuan in January: Central Bank Data

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The Chinese central bank has released figures on monetary and credit expansion in the first month of 2020 that point to a record-breaking increase in renminbi lending for a single month.

The broad M2 money supply balance stood at 202.31 trillion yuan as of the end of January, for a YoY rise of 8.4%, and a deceleration of 0.3 percentage points compared to the previous month. Growth held steady with the same period last year.

The narrow M1 money supply balance was 54.55 trillion yuan, holding steady with the same period last year for no YoY growth, and a deceleration of 4.4 percentage points compared to the end of the preceding month, as well as 0.4 percentage points compared to the same period last year.

The MO balance was 9.32 trillion yuan, for YoY growth of 6.6%, and a net cash injection of 1.61 trillion yuan in January.

As of the end of January the domestic and foreign currency loan balance was 161.93 trillion yuan, for YoY growth of 11.6%.

The renminbi loan balance was 156.45 trillion yuan, for YoY growth of 12.1%, and a deceleration of 0.2 percentage points compared to the preceding month, and 1.3 percentage points compared to the same period last year.

In January renminbi loans increased 3.34 trillion yuan, 110.9 billion yuan ahead of the reading for the same period last year, to hit a record-breaking single-month figure.

Loans to households increased 634.1 billion yuan, including a decline in short-term loans of 114.9 billion yuan, and an increase in medium and long-term loans of 749.1 billion yuan.

Enterprise unit loans increased 2.86 trillion yuan, including an increase in short-term loans of 769.9 billion yuan and an increase in medium and long-term loans of 1.66 trillion yuan.

Bill financing increased 359.6 billion yuan, while non-banking sector financial institution loans fell 156.7 billion yuan.

As of the end of January the domestic and foreign currency deposit balance was 202.2 trillion yuan, for YoY growth of 8.3%.

Renminbi deposits stood at 195.81 trillion yuan, for a YoY rise of 8.3%, a deceleration of 0.4 percentage points compared to the preceding month and an acceleration of 0.7 percentage points compared to the same period last year.

Renminbi deposits increased 2.88 trillion yuan in January, for a decline of 393.5 billion yuan compared to the same period last year.

Household deposits increased 4.24 trillion yuan, non-financial enterprise deposits fell 1.61 trillion yuan, and fiscal deposits increased 400.2 billion yuan, while non-banking sector financial deposits increased 570.1 billion yuan.

As of the end of January the foreign currency deposit balance was USD$783 billion, for YoY growth of 4.8%. Foreign currency deposits increased by $25.2 billion in January, $5.9 billion ahead of the figure for the same period last year.

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