China’s M2 Money Supply up 12% YoY at End of July

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China saw over double-digit year-on-year growth in its M2 money supply balance as of the end of July, for marked accelerations compared to the preceding month as well as the same period last year.

The M2 broad money supply balance in China stood at 257.81 trillion yuan as of the end of July, for a YoY rise of 12%, as well as an acceleration in growth of 0.6 percentage points compared to the end of June, and 3.7 percentage points compared to the same period last year.

The M1 balance was 66.18 trillion yuan, for YoY growth of 6.7%, and accelerations of 0.9 percentage points and 1.8 percentage points compared to the preceding month and the same period last year respectively.

As of the end of July the domestic and foreign currency loan balance was 212.84 trillion yuan, for YoY growth of 10.5%.

The renminbi loan balance stood at 207.03 trillion yuan, for YoY growth of 11%, and a deceleration of 0.2 percentage points compared to the end of the preceding month, as well as a deceleration of 1.3 percentage points compared to the same period last year.

Renminbi loans increased 679 billion yuan in July, 404.2 billion yuan less than the figure for the same period last year.

Household lending increased 121.7 billion yuan in July, including a reduction in short-term loans of 26.9 billion yuan, and an increase in medium-and-long term loans of 148.6 billion yuan.

Enterprise and institutional loans increased 287.7 billion yuan, including a reduction in short-term loans of 354.6 billion yuan, and an increase in medium-and-long-term loans of 345.9 billion yuan. Notes financing increased 313.6 billion yuan, and non-bank financial institution lending increased 147.6 billion yuan.

The period from January to July saw a cumulative increase in renminbi loans of 14.35 trillion yuan, 515 billion yuan more than the figure for same period last year.

As of the end of July, the foreign currency loan balance stood at USD$861.5 billion, for a YoY decline of 8.8%. Foreign currency loans fell $31.1 billion in July, $28.2 billion more than the decline for the same period last year.