1. Broad money rose by 8.7 percent

At end-February, broad money supply (M2) stood at RMB299.56 trillion, increasing by 8.7 percent year on year. Narrow money supply (M1), at RMB66.59 trillion, rose by 1.2 percent year on year. The amount of currency in circulation (M0) was RMB12.1 trillion, an increase of 12.5 percent year on year. The first two months of the year saw a net money injection of RMB756.6 billion.

2. RMB loans grew by RMB6.37 trillion in the first two months

At end-February, outstanding RMB and foreign currency loans totaled RMB248.67 trillion, up 9.7 percent year on year. Outstanding RMB loans stood at RMB243.96 trillion, registering a year-on-year growth of 10.1 percent.

In the first two months, new RMB loans reached RMB6.37 trillion. By sector, household loans increased by RMB389.4 billion, with short-term loans falling by RMB134 billion and medium and long-term (MLT) loans rising by RMB523.4 billion; loans to enterprises and public institutions grew by RMB5.43 trillion, with short-term loans and MLT loans increasing by RMB1.99 trillion and RMB4.6 trillion, respectively, and bill financing decreasing by RMB1.25 trillion; and loans to non-banking financial institutions climbed by RMB429.4 billion.

At end-February, outstanding foreign currency loans stood at USD662.6 billion, down 10.5 percent year on year. In the first two months, foreign currency loans rose by USD6.2 billion.

3. RMB deposits increased by RMB6.44 trillion in the first two months

At end-February, the outstanding amount of RMB and foreign currency deposits was RMB296.58 trillion, up 8.1 percent year on year. RMB deposits recorded an outstanding amount of RMB290.7 trillion, rising by 8.4 percent year on year.

In the first two months, RMB deposits increased by RMB6.44 trillion. Specifically, household deposits, fiscal deposits and deposits of non-banking financial institutions rose by RMB5.73 trillion, RMB480.6 billion and RMB1.71 trillion, respectively, while deposits of non-financial enterprises dropped by RMB1.85 trillion.

At end-February, the outstanding amount of foreign currency deposits was USD827.7 billion, down 6.2 percent year on year. In the first two months, foreign currency deposits increased by USD29.9 billion.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos stood at 1.85 percent and 1.89 percent respectively in February

In February, lending, cash bond and repo transactions in the interbank RMB market totaled RMB136.49 trillion, with the daily average increasing by 6.6 percent year on year to RMB7.58 trillion. Specifically, the average daily turnover of interbank lending fell by 26.6 percent year on year, while those of cash bond trading and pledged repo trading rose by 24.7 percent and 5.9 percent year on year, respectively.

In February, the monthly weighted average interest rate for interbank lending stood at 1.85 percent, up 0.02 percentage points month on month but down 0.07 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.89 percent, down 0.01 percentage points month on month and 0.18 percentage points year on year.

5. RMB cross-border settlement under the current account reached RMB1046.1 billion and RMB cross-border settlement of direct investment posted RMB506.7 billion in February

In February, RMB cross-border settlement under the current account reached RMB1046.1 billion, including RMB799.2 billion in settlement of trade in goods and RMB246.9 billion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB506.7 billion, of which ODI and FDI posted RMB157.4 billion and RMB349.3 billion, respectively.

Notes:

1. Data for the current period are preliminary.

2. Starting from 2015, deposits of non-banking financial institutions have been included in RMB deposits, foreign currency deposits and deposits in RMB and foreign currencies, while lending to non-banking financial institutions has been included in RMB loans, foreign currency loans and loans in RMB and foreign currencies.

3. “Loans to enterprises and public institutions” in this report refers to loans to non-financial enterprises, government agencies and organizations.

4. Starting from December 2022, e-CNY in circulation has been included in the amount of currency in circulation (M0). At end-December, e-CNY in circulation stood at RMB13.61 billion. The revision has not caused notable changes to month-end M1 or M2 growth rates of 2022. Shown below are the revised M0 growth rates.

5. Starting from January 2023, the People’s Bank of China has incorporated into the coverage of financial statistics three types of non-depository banking financial institutions, i.e., consumer finance companies, wealth management companies and financial asset investment companies. At end-January 2023, loans issued by the three types of institutions recorded an outstanding balance of RMB841 billion, posting an increase of RMB5.7 billion for the month, while their deposits registered an outstanding amount of RMB22.2 billion, rising by RMB2.7 billion over the month. All the statistics in this report are provided on a comparable basis.