China’s M2 Money Supply Growth Accelerates to 11.4% as of End of June

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China’s M2 money supply growth accelerated to over 11% as of the end of the first half of 2022.

As of the end of June the M2 money supply balance stood at 258.15 trillion yuan, for year-on-year (YoY) growth of 11.4%, according to data released by the People’s Bank of China (PBOC) on 11 July.

The growth rate marked an acceleration of 0.3 percentage points compared to the end of the preceding month, and an acceleration of 2.8 percentage points compared to the same period last year.

The narrow M1 money supply balance stood at 67.44 trillion yuan as of the end of June, for YoY growth of 5.8%, and an acceleration of 1.2 percentage points compared ot the end of the previous month, as well as 0.3 percentage points compared to the same period last year.

The M0 balance was 9.6 trillion yuan, for YoY growth of 13.8%, and a net cash injection of 518.6 billion yuan in the first half of 2022.

As of the end of June the renminbi loan balance was 206.35 trillion yuan, for a YoY rise of 11.2%, as well as an acceleration of 0.2 percentage points compared to the end of the previous month, and a deceleration of 1.1 percentage points compared to the same period last year.

Renminbi loans increased 13.68 trillion yuan in the first half of 2022, 919.2 billion yuan more than the reading for the same period in 2022.

Household loans increased 2.18 trillion yuan, including 620.9 billion yuan in short-term loans, and 1.56 trillion yuan in medium and long-term loans.

Enterprise and entity loans increased 11.4 trillion yuan, including 2.99 trillion yuan in short-term loans and 6.22 trillion yuan in medium and long-term loans, as well as 2.11 trillion yuan in notes financing.

As of the end of June the domestic and foreign currency deposit balance stood at 257.68 trillion yuan, for a YoY rise of 10.5%.

The renminbi deposit balance stood at 251.05 trillion yuan, for a YoY rise of 10.8%, and accelerations of 0.3 and 1.6 percentage points compared to the end of the preceding month and the same period last year respectively.