Chinese residents' bank deposits hit 17.5 trillion yuan at March end

China's outstanding resident's bank deposits hit 17.5 trillion yuan at the end of March 2007, according to the quarterly monetary policy report of the People's Bank of China.

However, its growth rate is 5.7 percentage points lower than that of a year earlier with the increment down by 83.6 billion yuan accordingly, the central bank report said.

Among the total, resident's current deposits increased by 206.5 billion yuan year on year while resident's fixed-term deposit declined by 290.1 billion yuan year on year at March end.

The report attributed the declining growth rate to the increasing income of residents, which result in more spending, the report explained.

Meanwhile, booming capital market also provokes depositors to draw their cash from banks, it said.

In the first quarter, 4.78 million stock accounts were opened in China and in April alone, another 4.5 million new accounts were set up. (one U.S. dollar equals to 7.6835 yuan)

Source: Xinhua the Federal Reserve, is welcome news for officials at the central bank.

The officials Wednesday held the target for interest rates steady at 5.25 percent for the seventh straight time since June last year and signaled that they remained more worried about inflationary pressures than the slowdown in economic growth.

Source: Xinhua