Central bank: Savings growth declines seven months in a row

August financial statistics released today by the People's Bank of China (PBC) show that saving deposit growth has witnessed the seventh consecutive monthly decline. By the end of August domestic savings balance as expressed on the consolidated statement of domestic and foreign currency accounts was 12.14 trillion yuan increasing by 13.8 percent year on year. The year-on-year growth declined 4.1 percentage points. RMB saving deposit balance was 11.4 trillion yuan increasing by 15.3 percent, which was 4.7 percentage points lower year on year and 0.6 percentage points lower than at the end of the previous month.

Statistics also show that growth rates of money supply and various RMB loans in August slowed down. Loan growth rate fell back somewhat. By the end of August money & quasi-money (M2) balance was 23.97 trillion yuan increasing by 13.6 percent. The growth was 1.7 percentage points lower than at the end of the previous month. Money (M1) balance was 8.91 trillion increasing by 15.1 percent - about the same level at the end of the previous month. After deducting seasonal factors the month-on-month M2 growth rate at the end of August is converted into a yearly rate of 6.5 percent - about the same level of the previous month. Money in circulation (M0) balance at the end of August was 1.95 trillion yuan. Net money issuance during the month was 10.9 billion yuan down by 13.6 billion yuan month on month.

Loan growth rate fell back somewhat. By the end of August the consolidated statement of various domestic and foreign currency loans in all financial institutions (including foreign-funded financial institutions) had a balance of 18.22 trillion yuan increasing by 14.5 percent month on month. The growth was 1.4 percentage points lower than at the end of the previous month.

By People's Daily Online