OREANDA-NEWS. June 23, 2011.

1. At end-May, broad money (M2) stood at 76.34 trillion yuan, increasing by 15.1% year-on-year, down 0.2 and 5.9 percentage points from the end of the previous month and the same period last year respectively; narrow money (M1) registered 26.93 trillion yuan, rising by 12.7% year-on-year, down 0.2 and 17.2 percentage points from the end of the previous month and the same period last year respectively; and currency in circulation (M0) posted 4.46 trillion yuan, up 15.4% year-on-year. A net money withdrawal of 89.4 billion yuan was recorded in May, with money injection and withdrawal in normal state.

2. RMB loans and foreign currency loans increase by 551.6 billion yuan and USD 13 billion respectively

At end-May, outstanding RMB and foreign currency loans totalled 54.0 trillion yuan, up 16.9% year-on-year. Outstanding RMB loans registered 50.77 trillion yuan, up 17.1% year-on-year, decelerating by 0.4 and 4.4 percentage points from the end of the previous month and the same period last year respectively. RMB loans registered a monthly increase of 551.6 billion yuan, 100.5 billion yuan less than the growth in the same period last year. By sector, loans to households rose by 217.5 billion yuan, with short-term loans and long and medium-term loans increasing by 91.2 billion yuan and 126.3 billion yuan respectively; loans to non-financial enterprises and other sectors rose by 324.9 billion yuan, with short-term loans, long and medium-term loans and bill financing increasing by 138.6 billion yuan, 118.4 billion yuan and 56.8 billion yuan respectively. Outstanding foreign currency loans registered USD 498.1 billion, up 21.2% year-on-year. Foreign currency loans increased by USD 13 billion in May, up USD 14.6 billion year-on-year.

3. RMB deposits and foreign currency deposits increase by 1.11 trillion yuan and USD 1.1 billion respectively

At end-May, the outstanding balance of RMB and foreign currency deposits totalled 78.28 trillion yuan, up 17.0% year-on-year. RMB deposits registered an outstanding balance of 76.73 trillion yuan, rising by 17.1% year-on-year, down 0.2 and 3.9 percentage points from the end of the previous month and the same period last year respectively. RMB deposits rose by 1.11 trillion yuan in May, 19.5 billion yuan more than the increase in the same period last year. Specifically, household deposits, deposits of non-financial enterprises and fiscal deposits increased by 71.3 billion yuan, 469.7 billion yuan and 353.1 billion yuan respectively. The outstanding balance of foreign currency deposits rose by 17.1% year-on-year to USD 239.1 billion. Foreign currency deposits recorded a monthly increase of USD 1.1 billion, up USD 5 billion year-on-year.

4. The interbank market sees brisk trading and market rates go up

In May, RMB trading in the interbank market amounted to 17.86 trillion yuan. The average daily turnover registered 850.5 billion yuan, increasing by 149.2 billion yuan, or 21.3%, year-on-year.

In May, the monthly weighted average interbank lending rate stood at 2.93%, up 0.77 percentage points from the previous month. The monthly weighted average interest rate on bond pledged repos registered 3.03%, up 0.81 percentage points month-on-month.

Note: A total of 92.4 billion yuan of non-performing policy loans, written off in March 2011, has been deducted from outstanding loans.