China’s Money Supply Growth Decelerates at End of 2021

115

Growth in the Chinese money supply decelerated in year-on-year terms at the end of December according to the latest official data released by the People’s Bank of China (PBOC).

As of the end of December 2021 the broad M2 money supply balance stood at 238.29 trillion yuan, for a YoY increase of 9%.

This growth rate marks an acceleration of 0.5 percentage points compared to the end pf the previous month, and a deceleration of 1.1 percentage points compared to the same period the previous year.

The M1 money supply balance was 64.74 trillion yuan, for a YoY rise of 3.5%, and an acceleration of 0.5 percentage points compared to the previous month, as well as a deceleration of 5.1 percentage points compared to the same period last year.

The M0 money supply balance was 9.08 trillion yuan, for a YoY rise of 7.7%, and a full year net cash injection of 651.0 billion yuan in 2021.

As of the end of December the domestic and foreign currency loan balance was 198.51 trillion yuan, for a YoY increase of 11.3%. The renminbi loan balance was 192.69 trillion yuan, for a YoY rise of 11.6%, and decelerations of 0.1 and 1.2 percentage points respectively compared to the end of the previous month and the same period last year.