The People’s Bank of China published the latest set of monetary statistics.
M2 Money supply grew by 12.9% yoy, well below the long-run pre-financial crisis average, and below last months print and the consensus estimate of 13.0%. M1 money supply increased by 8.4% yoy, and currency in circulation increased by 11.9%.
New Chinese Yuan loans in September amounted to RMB586.8 billion, well above the expectation of RMB500 billion. Total loans outstanding reached RMB53.5 trillion, increased by 15.8% compared to a year ago. Total deposits, however, fell by RMB201 billion to RMB79.21 trillion, although it is still up by 13.6% compared to a year ago.
Source: People’s Bank of China
The increase in new loans could be an indication, as government has pointed out, that monetary policy will be fine-tuned. A more interesting thing, however, is the RMB201 billion fall of deposits, and RMB727.2 billion drop of deposits from households.
This article originally appeared here: China: Monetary Statistics For October 2011
Also sprach Analyst – World & China Economy, Global Finance, Real Estate
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