China: Monetary Statistics For October 2011

The People’s Bank of China published the latest set of monetary statistics.

M2 Money supply grew by 12.9% yoy, well below the long-run pre-financial crisis average, and below last months print and the consensus estimate of 13.0%.  M1 money supply increased by 8.4% yoy, and currency in circulation increased by 11.9%.

New Chinese Yuan loans in September amounted to RMB586.8 billion, well above the expectation of RMB500 billion.  Total loans outstanding reached RMB53.5 trillion, increased by 15.8% compared to a year ago.  Total deposits, however, fell by RMB201 billion to RMB79.21 trillion, although it is still up by 13.6% compared to a year ago.

Source: People’s Bank of China

The increase in new loans could be an indication, as government has pointed out, that monetary policy will be fine-tuned.  A more interesting thing, however, is the RMB201 billion fall of deposits, and RMB727.2 billion drop of deposits from households (Update: here are some possible explanations for the huge drop of deposits).

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About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.