1. Broad money rose by 7.9 percent

At end-May, broad money supply (M2) stood at RMB325.78 trillion, rising by 7.9 percent year on year. Narrow money supply (M1), at RMB108.91 trillion, grew by 2.3 percent year on year. The amount of currency in circulation (M0) was RMB13.13 trillion, an increase of 12.1 percent year on year. The first five months saw a net money injection of RMB306.4 billion.

2. RMB loans grew by RMB10.68 trillion in the first five months

At end-May, outstanding RMB and foreign currency loans totaled RMB270.2 trillion, up 6.7 percent year on year. Outstanding RMB loans stood at RMB266.32 trillion, registering a year-on-year growth of 7.1 percent.

In the first five months, RMB loans expanded by RMB10.68 trillion. By sector, household loans increased by RMB572.4 billion, with short-term loans falling by RMB262.4 billion and medium and long-term (MLT) loans rising by RMB834.7 billion; loans to enterprises and public institutions grew by RMB9.8 trillion, with short-term loans, MLT loans and bill financing increasing by RMB3.14 trillion, RMB6.16 trillion and RMB364.5 billion, respectively; and loans to non-banking financial institutions rose by RMB135.7 billion.

At end-May, outstanding foreign currency loans stood at USD539.4 billion, down 16.3 percent year on year. The first five months saw a slide of USD2.7 billion in foreign currency loans.

3. RMB deposits increased by RMB14.73 trillion in the first five months

At end-May, the outstanding amount of RMB and foreign currency deposits was RMB324.08 trillion, up 8.3 percent year on year. RMB deposits recorded an outstanding amount of RMB316.96 trillion, rising by 8.1 percent year on year.

In the first five months, RMB deposits increased by RMB14.73 trillion. Specifically, household deposits, fiscal deposits and deposits of non-banking financial institutions rose by RMB8.3 trillion, RMB2.07 trillion and RMB3.07 trillion, respectively, while deposits of non-financial enterprises declined by RMB7.3 billion.

At end-May, the outstanding amount of foreign currency deposits was USD990.1 billion, up 19 percent year on year. The first five months saw an increase of USD137.2 billion in foreign currency deposits.

4. The monthly weighted average interest rates for interbank RMB lending and bond pledged repos in May stood at 1.55 percent and 1.56 percent respectively

In May, lending, cash bond and repo transactions in the interbank RMB market totaled RMB167.2 trillion, with the daily average rising by 14.9 percent year on year to RMB8.8 trillion. Specifically, the average daily turnover of interbank lending dropped by 8.6 percent, while those of cash bond trading and pledged repo trading rose by 5 percent and 19.1 percent year on year, respectively.

The monthly weighted average interest rate for interbank lending in May stood at 1.55 percent, down 0.18 percentage points month on month and 0.3 percentage points year on year. The monthly weighted average interest rate for pledged repos was 1.56 percent, down 0.16 percentage points month on month and 0.26 percentage points year on year.

5. RMB cross-border settlement under the current account reached RMB1.31 trillion and RMB cross-border settlement of direct investment posted RMB0.61 trillion for May

RMB cross-border settlement under the current account reached RMB1.31 trillion for May, including RMB0.99 trillion in settlement of trade in goods and RMB0.32 trillion in settlement of trade in services and other current account items. RMB cross-border settlement of direct investment amounted to RMB0.61 trillion for the month, of which ODI and FDI posted RMB0.2 trillion and RMB0.41 trillion, respectively.

Notes:

1. Data for the current period are preliminary.

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

3. Starting from January 2023, the People’s Bank of China (PBOC) 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.

4. Starting from January 2025 statistics, the PBOC has revised the measurement of narrow money supply (M1). The revised M1 consists of currency in circulation (M0), corporate demand deposits, personal demand deposits, and customers’ reserve funds with non-bank payment institutions. Adjusted accordingly on a comparable basis, the month-end M1 balances and growth rates of 2024 are shown below.