The People's Bank of China (PBC) announced in its monthly financial report that the growth of bank deposits made by Chinese residents has continued to decrease in July, following a substantial slow-down since May.

The PBC attributed this to the resumption of the purchase of shares in cash and the sharp stock exchange increase in May and June, which have allowed bank deposits to flow into the stock market.

However, business banking deposits continue to grow strongly month-on-month.

The report also shows that loans of Renminbi rose in July, Renminbi exchange among banks is active, market interest rates have climbed and the flexibility of exchange rate of Renminbi is increasingly bolstered.

By People's Daily Online