China’s money supply expands at slower pace in July

China’s outstanding loans and money supply continued to grow in July, but at a slower pace compared to the previous year, according to the latest data released by the People’s Bank of China (PBC).

Outstanding yuan and foreign currency loans totaled 255.43 trillion yuan at the end of July, up 8.3 per cent year-on-year.

Specifically, yuan loans stood at 251.11 trillion yuan, with an annual growth rate of 8.7 per cent. In the first seven months, new yuan loans amounted to 13.53 trillion yuan.

Household loans increased by 1.25 trillion yuan, while loans to enterprises and public institutions grew by 11.13 trillion yuan. Loans to non-banking financial institutions climbed by 594.6 billion yuan.

Meanwhile, outstanding foreign currency loans stood at $604.7 billion at the end of July, down 13.8 per cent year-on-year. In the first seven months, foreign currency loans declined by $51.7 billion.

Broad money supply (M2) reached 303.31 trillion yuan at the end of July, rising by 6.3 per cent year-on-year. Narrow money supply (M1) stood at 63.23 trillion yuan, falling by 6.6 per cent year-on-year.

The amount of currency in circulation (M0) was 11.88 trillion yuan, an increase of 12 per cent year-on-year. The first seven months saw a net money injection of 539.6 billion yuan.

Outstanding foreign currency deposits stood at $834.7 billion at the end of July, up 1.6 per cent year-on-year. In the first seven months, foreign currency deposits increased by $36.9 billion.

Attribution: People’s Bank of China report

Subediting: M. S. Salama