China's new yuan-denominated loans reach $97.29 billion in May

13 June 2009

China's new yuan-denominated loans reached 664.5 billion yuan (about $97.29 billion) in May, up from 591.8 billion yuan in April, the People's Bank of China (PBOC), said.

Money supply, as measured by M2, which covers cash in circulation and all deposits grew 25.74 per cent at the end of May from a year earlier to 54.82 trillion yuan.

Renminbi deposits grew 1.33 trillion yuan in May, up 26.27 per cent from a year earlier, taking outstanding deposits to 54.63 trillion yuan, It brings outstanding loans in financial institutions up 30.6 per cent YoY to 36.21 trillion yuan from 35.55 trillion yuan in April, the PBOC said.

M1, the narrow measure of money supply (corporate current deposits and cash in circulation) touched 18.2 trillion yuan, up 18.69 per cent YoY, 1.21 percentage points higher than the April level.

Outstanding M0,(cash in circulation), was up 11.24 per cent to 3.36 trillion yuan, higher from the corresponding period last year.

The new yuan-denominated loans from Jan - May touched 5.84 trillion yuan, overshooting the government's full-year target of 5 trillion yuan and China now expects to see an 8-trillion yen loan surge in 2009 (See: China sees an 8 trillion yen loan surge in 2009)