The People's Bank of China--News

Financial Performance Remained Stable in May

Money supply grew 18.07%. At end-May 2008, broad money (M2) stood at 43.62 trillion yuan, increasing 18.07% year-on-year, up 1.33 and 1.13 percentage points from the end of last year and the end of last month respectively. Narrow money (M1) registered 15.33 trillion yuan, representing a year-on-year growth of 17.93%, down 3.12 and 1.12 percentage points from the end of last year and the end of last month respectively. Cash in circulation (M0) grew 12.88% year-on-year to 3.02 trillion yuan. In the first five months of the year, net cash withdrawal from circulation totaled 20.6 billion yuan, falling 13.9 billion yuan year-on-year.

RMB loans increased 14.86% year-on-year. At end-May, outstanding RMB and foreign currency loans of financial institutions totaled 30.19 trillion yuan, rising 16.22% year-on-year. Outstanding RMB loans grew 14.86% year-on-year to 28.29 trillion yuan, decelerating by 1.24 percentage points year-on-year but accelerating by 0.16 percentage points month-on-month. RMB loans registered an increase of 318.5 billion yuan in the month, up 71.2 billion yuan year-on-year. By sector, loans to households increased by 69.3 billion yuan, 20.2 billion yuan less than the growth in the same period last year. In breakdown, short-term loans grew by 27 billion yuan, long and medium-term loans 42.3 billion yuan. Loans to non-financial companies and other sectors rose by 249.2 billion yuan, 91.4 billion yuan more than the growth in the same period last year. In breakdown, short-term loans, long and medium-term loans and bill financing increased by 60.4 billion, 155.3 billion and 31.8 billion yuan respectively. From January to May, RMB loans rose by 2.1201 trillion yuan, accelerating by 27.3 billion yuan year-on-year. At end-May, outstanding foreign currency loans of financial institutions totaled US$273.9 billion, up 55.39% year-on-year. Foreign currency loans increased by US$3 billion in the month, down US$500 million year-on-year.

RMB deposits grew 19.64% year-on-year. At end-May, outstanding RMB and foreign currency deposits of financial institutions totaled 44.24 trillion yuan with a year-on-year growth of 18.56%. Outstanding RMB deposits increased 19.64% year-on-year to 43.11 trillion yuan, up 1.95 percentage points month-on-month. RMB deposits rose by 882.6 billion yuan in the month, up 724.5 billion yuan year-on-year. By sector, household deposits, deposits of non-financial companies and fiscal deposits grew by 236.9 billion, 389.9 billion and 252.4 billion yuan respectively, accelerating by 515.4 billion, 156 billion and 44.3 billion yuan respectively year-on-year. From January to May, RMB deposits recorded a 4.1761 trillion yuan increase, 1.6924 trillion yuan more than the growth in the same period last year. At end-May, outstanding foreign currency deposits of financial institutions dropped 2.91% year-on-year to US$162.2 billion. Foreign currency deposits fell US$2.1 billion in the month, as compared with the US$4.8 billion growth in the same period last year.

RMB transactions in the inter-bank lending market were brisk and market rates remained stable. In May 2008, RMB transactions in the inter-bank lending market amounted to 8.27 trillion yuan. The average daily turnover reached 393.7 billion yuan, increasing by 52.5%, or 135.5 billion yuan, year-on-year.

In May, the monthly weighted interest rate for inter-bank lending averaged 2.83%, up 0.24 and 0.82 percentage points from the previous month and the same period last year respectively. The monthly weighted interest rate for bond pledged repo averaged 2.88%, up 0.18 percentage points month-on-month and 0.79 percentage points year-on-year.