Renminbi lending saw a sizeable increase in the first half of 2021 as the Chinese economy continued to recover from the impacts of the COVID-19 pandemic.
Renminbi loans increased by 12.76 trillion yuan (approx. USD$1.97 trillion) in the first half of 2021, 667.7 billion yuan more than the figure for the same period last year, according to figures from the Chinese central bank’s first half financial data report released on 13 July.
Foreign currency loans increased by USD$80.2 billion in the first half, for an expansion of $2.8 billion compared to the same period in 2020.
Renminbi deposits increased by 14.05 trillion in the first half, while foreign currency deposits were up $129.7 billion.
China’s M2 money supply balance stood at 231.78 trillion yuan at the end of June, for a YoY rise of 8.6%, and an acceleration of 0.3 percentage points compared to the preceding month, as well as a deceleration of 2.5 percentage points compared to the same period last year.
The M1 money supply balance was 63.75 trillion yuan, for a YoY rise of 5.5%, as well as a deceleration of 0.6 percentage points compared to the previous month and 1 percentage point compared to the same period last year.
At the end of June outstanding total social financing was 301.56 trillion yuan, for a YoY rise of 11%, while total social financing in the first half was 17.74 trillion yuan, for a reduction of 3.13 trillion yuan compared to the same period last year, yet an increase of more than 3.12 trillion yuan compared to the same period in 2019.
China’s foreign reserves stood at $3.21 trillion at the end of June.