The performanceof financial industry remained sound and stable in November. In particular, theincrease of broad money M2 and RMB loans speeded up, corporate deposits andsavings deposits increased largely, inter-bank market transactions witnessedsome recovery, money market interest rates lowered slightly and RMB exchangerate remained stable.
Broad money M2accelerated. In November, M2 grew by 14 percent YOY to RMB24.71 trillion yuan,representing an acceleration of 0.6 percentage points from the previous month.Narrow money M1 increased by 13.8 percent to RMB9.24 trillion yuan, up by 1.2percentage points from end-October. After the deduction of seasonal factors,annualized month-on-month growth of M2 equals to 17.7 percent, with that of M124.3 percent. Taking into consideration the current economic growth and pricefloat, the expansion of money supply is moderate.
In November, M0increased by 9.6 percent to RMB2.02 trillion yuan. Cash injection in the monthalone declined by RMB5.8 billion yuan to RMB13.1 billion yuan. Cumulative cashinjection of the first 11 months amounted to RMB46.3 billion yuan, down RMB69.8billion yuan compared with the same period of 2003.
Outstanding loansdenominated in both local and foreign currencies by all financial institutionsincreased by 13.5 percent to RMB18.64 trillion yuan, 0.2 percentage points upfrom end-October. RMB loans increased by 13.5 percent to RMB17.52 trillionyuan, 0.2 percentage points up from end-October.
New RMB loansin November alone increased by RMB50.9 billion yuan to RMB149.5 billion yuan.Cumulative RMB loans in the first eleven months amounted to RMB1.9691 trillionyuan, RMB651.9 billion yuan less than the same period of 2003. In particular,new short-term loans and paper finance in November increased by RMB35.6 billionyuan to RMB42.5 billion yuan; new medium- and long-term loans increased byRMB10.3 billion yuan to RMB103.4 billion yuan.
Growth offinancial institutions deposits accelerated, in particular, corporate depositsand savings deposits witnessed significant acceleration. Outstanding depositsdenominated both in local and foreign currencies with all financialinstitutions surged by 15.6 percent to RMB25.26 trillion yuan, up 0.3percentage points from the previous month. In particular, household savingsdeposits rose by 13.7 percent to RMB12.43 trillion yuan, up 0.5 percentagepoints from the previous month; corporate deposits rose by 15.2 percent toRMB8.63 trillion yuan, up 0.9 percentage points from end-October.
In November,RMB deposits increased by 16.3 percent to RMB23.98 trillion yuan. Inparticular, RMB savings deposits grew by 15.1 percent to RMB11.76 trillionyuan, 0.6 percentage points higher than the growth recorded in October, withannualized month-on-month growth of 22 percent. Corporate deposits grew by 15.5percent to RMB8.15 trillion yuan, up 1.1 percentage points from the previousmonth. In general, current working capital of enterprises is normal.
New RMBdeposits grew by RMB126.3 billion yuan to RMB330.6 billion yuan. In particular,affected by the interest rate hike, new household deposits increased by RMB76.3billion yuan to RMB161.7 billion yuan, reflecting an increasing stability ofRMB household deposits; new corporate deposits rose by RMB87.8 billion yuan toRMB121.1 billion yuan, mainly because of the good profitability of enterprises.
Renminbitransactions in inter-bank market went up, market interest rates loweredslightly. In November, turnover of renminbi transactions in inter-bank marketrose by RMB232.5 billion to RMB1.1102 trillion yuan, with daily averagereaching RMB50.47 billion yuan, 3.5 percent higher from the previous month. Themonthly-weighted interest rates for inter-bank borrowing, collateralized bondrepurchase, and outright bond repurchase averaged at 2.22 percent, 2.11 percentand 2.115 percent, 0.02, 0.05 and 0.04 percentage points lower than theprevious month respectively. Inter-bank market interest rates continued todecline slightly, with ample capital in the market.
RMB exchangerate remained stable, being at RMB8.2765 yuan per US dollar at end-November.
