Central Bank: Broad money (M2) increased 8.8% year-on-year in late February

I. Broad money growth of 8.8%, narrow money growth of 8.5%

At the end of February, the balance of broad money (M2) was RMB17.29 trillion, an increase of 8.8% year-on-year, 0.2% higher than at the end of last month and 1.6 percentage points lower than the same period of the previous year; the narrow money (M1) balance was 51.7 trillion yuan, up from the same period last year. The growth rate was 8.5%. The growth rate was 6.5 and 12.9 percentage points lower than the end of last month and the same period of last year. The balance of currency (M0) in circulation was 8.14 trillion yuan, a year-on-year increase of 13.5%. In February, the net cash injection was 678.8 billion yuan.

2. In the first two months, RMB loans increased by 3.74 trillion yuan, foreign currency loans increased by 54.8 billion US dollars

At the end of February, the balance of domestic and foreign currency loans was 129.52 trillion yuan, a year-on-year increase of 12.1%. At the end of the month, the balance of RMB loans was 123.86 trillion yuan, a year-on-year increase of 12.8%, and the growth rate was 0.1 percentage point higher than at the end of the previous year.

In February, RMB loans increased by 839.3 billion yuan, a decrease of 326.4 billion yuan year-on-year. In terms of sub-sectors, household sector loans increased by 275.1 billion yuan, of which short-term loans decreased by 46.9 billion yuan, medium- and long-term loans increased by 322 billion yuan, non-financial corporations and institutional group loans increased by 744.7 billion yuan, of which short-term loans increased by 140.8 billion yuan. The medium- and long-term loans increased by 658.5 billion yuan, bill financing decreased by 77.5 billion yuan, and non-banking financial institution loans decreased by 179.5 billion yuan.

As there are Spring Festival factors at the beginning of the year, the loan changes should be seen in the first two months. In the first two months, RMB loans increased by 3.74 trillion yuan, an increase of 540.7 billion yuan year-on-year. In terms of sub-sectors, loans from households increased by 1.18 trillion yuan, of which, total short-term loans increased by 263.7 billion yuan, and long-term loans increased by 913 billion yuan; non-financial corporations and government-organized group loans increased by 2.53 trillion yuan, of which short-term loans Total loans increased by 515.8 billion yuan, medium and long-term loans increased by 1.99 trillion yuan, bill financing decreased by 42.8 billion yuan, and loans from non-banking financial institutions increased by 6.7 billion yuan.

At the end of February, the balance of foreign currency loans was 882.7 billion U.S. dollars, an increase of 7.5% year-on-year. In the first two months, foreign currency loans increased by 54.8 billion U.S. dollars, of which 7.5 billion U.S. dollars were added in February.

3. RMB deposits increased by 3.55 trillion yuan in the first two months, and foreign currency deposits increased by 44.8 billion US dollars cumulatively

At the end of February, the balance of domestic and foreign currency deposits was 172.96 trillion yuan, an increase of 8.4% year-on-year. At the end of the month, the balance of renminbi deposits was 167.67 trillion yuan, an increase of 8.6% year-on-year, 0.4 percentage points lower than the end of the previous year.

In February, RMB deposits decreased by 301.1 billion yuan, a year-on-year decrease of 2.61 trillion yuan. Among them, household deposits increased by 2.87 trillion yuan, non-financial corporate deposits decreased by 2.4 trillion yuan, fiscal deposits decreased by 528.7 billion yuan, and non-banking financial institution deposits increased by 312.5 billion yuan.

In the first two months, RMB deposits increased by 3.55 trillion yuan, a decrease of 234.9 billion yuan year-on-year. Among them, household deposits increased by 3.74 trillion yuan, non-financial corporate deposits decreased by 2.38 trillion yuan, fiscal deposits increased by 452.3 billion yuan, and deposits by non-banking financial institutions increased by 1.91 trillion yuan.

At the end of February, the balance of foreign currency deposits was US$835.8 billion, an increase of 11.1% year-on-year. The foreign currency deposits in the first two months increased by 44.8 billion U.S. dollars, of which 0.3 billion U.S. dollars in February.

The weighted average interest rate for inter-bank renminbi interbank borrowing in April and February was 2.73%, and the weighted average interest rate for pledged bond repurchases was 2.87%.

In February, the interbank renminbi market totaled 55.41 trillion yuan through inter-bank loans, spot vouchers and repurchase transactions. The average daily turnover was 3.26 trillion yuan, and the daily average transaction volume increased by 22.2% over the same period of last year. Among them, the daily average transaction volume of inter-bank lending increased by 35.4% year-on-year, the average daily transaction volume of existing securities decreased by 6.6% year-on-year, and the daily average transaction volume of collateralized repo rose by 26.3% year-on-year.

In February, the weighted average interest rate for inter-bank borrowing was 2.73%, which was 0.05 percentage points lower than the end of last month and 0.26 percentage points higher than the same period of last year. The weighted average interest rate of pledged repo was 2.87%, which was 0.01 percentage point lower than the end of last month. It was 0.26 percentage points higher in the same period.

5. RMB 297.38 billion in cross-border trade RMB settlement business in February and RMB 153.14 billion in direct investment in RMB settlement business

In February 2018, cross-border goods trade, service trade and other current accounts, foreign direct investment, and foreign direct investment settled in RMB accounted for 221.4 billion yuan, 75.89 billion yuan, 38.27 billion yuan, and 114.87 billion yuan, respectively.