China's new RMB loans drop to RMB 355.9 bln in Jul

Aug. 12, 2009 (China Knowledge) - China's new RMB-denominated loans slowed to RMB 355.9 billion last month, falling sharply from RMB 1.53 trillion in June, according to a statement published by the People's Bank of China on Tuesday.

In the first seven months of this year, Chinese banks extended a total of RMB 7.73 trillion, far surpassing the full-year target of RMB 5 trillion.
 
China's M2, a broad measure of its money supply, amounted to RMB 57.3 trillion at the end of July, up 28.42% compared with a year ago, according to the statement.
 
M1, a narrower measure that includes deposits in withdrawal-on-demand accounts and cash in circulation, rose 26.37% year on year to RMB 19.59 trillion at the end of July. The July growth rate is 1.6 percentage points higher than the June figure.

M0, or cash in circulation, increased 11.59% from a year earlier to RMB 3.42 trillion in July.

By the end of July, outstanding RMB loans by financial institutions had increased 33.9% year on year to RMB 38.1 trillion, while the balance of RMB deposits had reached RMB 57.03, up 8.54% from a year ago.

PBOC said earlier this month that it will firmly adhere to a moderately loose monetary policy, but that it will use market tools to guide reasonable loan growth during the second half of this year to reduce risks.