SteelOrbis Shanghai
According to the bulletin released by the People's Bank of
China on November 13,
China's financial industry was stable in October. Broad money M2 showed recovery in growth while narrow money M1 was still in rapid increase. Bank loans saw a moderate rise, with a little decline in savings deposits. Meanwhile, the market interest rate climbed up slightly.
By the end of October, M2 had reached RMB 33.27 trillion ($4.23 trillion), a year-on-year increase of 17.1 percent. The monthly growth rate of M2 was up 0.3 percent compared to last month, but down 0.9 percent year on year. M1 was RMB 11.84 trillion ($1.5 trillion), up 16.3 percent year on year. The growth rate of M1 was up 4.2 percentage points compared with the same period last year and up 0.6 percent over the previous month.
Bank loans were in stable growth. By the end of October, total loan balances of financial institutions stood at RMB 23.29 trillion ($3 trillion), up 14.4 percent year on year. The growth was down 0.2 percentage points month on month, but up 0.7 percent year on year.
RMB deposit balances totaled RMB 32.93 trillion by the end of October, up 17 percent year on year. The growth was down 0.2 percentage points month on month and 2 percentage points year on year.
In October, the weighted average interest rates for inter-bank lending and collateral bonds repurchase were 2.4 percent and 2.22 percent respectively, up 0.08 and 0.1 percentage points month on month, and both up 0.68 percentage points compared with the end of the previous year.
With the strengthening of macro-control measures, the year-on-year increase of loans showed quite stable movement, with a decline in month-on-month growth which had a bad impact on the demand for steel products. However, in all loan increments, the decrease in short-term loans and increase in long- or medium-term loans indicated that there is still great potential for Chinese demand for next year.