According to the bulletin issued by the People's Bank of
China,
China's financial sector showed itself to be in good health in January. Broad money M2 saw a slowdown in growth, while narrow money M1 was still in rapid increase. With the considerable rise in bank loans, saving deposits continued to decline. Meanwhile, due to the brisk RMB commercial activity among the banks, the market interest rate dropped down slightly.
By the end of January, M2 had reached RMB 35.2 trillion ($4.55 trillion), a year-on-year increase of 15.9 percent. The growth rate of M2 was one percentage point lower than the previous month, and down 3.3 percentage points year on year. M1 was RMB 12.9 trillion ($1.67 trillion), up 20.2 percent year on year. The growth rate of M1 was up 2.7 percentage points month on month and up 9.6 percentage points compared with the same period last year.
By the end of January, the total combined loan balances of
China's financial institutions stood at RMB 24.4 trillion ($3.15 trillion), up 15.4 percent year on year. This growth was up 0.8 of a percentage point month on month and up 2.3 percentage points year on year. Newly-issued loans in January reached RMB 567.6 billion ($73.33 billion), almost equal to the level of the same month last year.
By the end of January, the total RMB deposit balance of
China's financial institutions totaled RMB 16.2 trillion ($2.09 trillion), up 9.3 percent year on year. This increase was down 5.3 percentage points month on month and down 11.8 percentage points year on year. Newly-added deposits in January reached RMB 24.9 billion ($3.22 billion).
In January, the total
trading volume for inter-bank lending and collateral bonds repurchase was RMB 3.7 trillion ($480 billion), which represents an average daily
trading of RMB 183.8 billion ($23.75 billion), up 76.6 percent year on year. The weighted average interest rates for inter-bank lending and collateral bonds repurchase were 1.86 percent and 1.66 percent, down 0.39 and 0.35 of a percentage point respectively month on month.