Renminbi loans increased by 12.87 trillion yuan in the first seven months M2 balance at end of July rose 8.8% year-on-year

    I. Broad Money Supply Grows by 8.8%

    At the end of July, the broad money supply (M2) stood at 329.94 trillion yuan, marking an 8.8% year-on-year increase. The narrow money supply (M1) reached 111.06 trillion yuan, up 5.6% year-on-year. Currency in circulation (M0) totaled 13.28 trillion yuan, rising 11.8% year-on-year. Cash was net injected by 465.1 billion yuan in the first seven months.

    II. RMB Loans Increased by 12.87 Trillion Yuan in First Seven Months

    At the end of July, the outstanding balance of domestic and foreign currency loans reached 272.48 trillion yuan, up 6.7% year-on-year. The outstanding balance of RMB loans stood at 268.51 trillion yuan, rising 6.9% year-on-year.

    RMB loans increased by 12.87 trillion yuan in the first seven months. By sector: Household loans increased by 680.7 billion yuan, including a decrease of 383 billion yuan in short-term loans and an increase of 1.06 trillion yuan in medium- and long-term loans. Enterprise loans increased by 11.63 trillion yuan, including an increase of 3.75 trillion yuan in short-term loans, an increase of 6.91 trillion yuan in medium- and long-term loans, and an increase of 824.7 billion yuan in bill financing. Non-bank financial institution loans increased by 235.7 billion yuan.

    At the end of July, the outstanding balance of foreign currency loans stood at $555.8 billion, down 8.1% year-on-year. Foreign currency loans increased by $13.7 billion in the first seven months.

    III. RMB Deposits Increased by 18.44 Trillion Yuan in the First Seven Months

    At the end of July, the outstanding balance of deposits in both domestic and foreign currencies reached 327.83 trillion yuan, up 9% year-on-year. The outstanding balance of RMB deposits at the end of the month was 320.67 trillion yuan, up 8.7% year-on-year.

    RMB deposits increased by 18.44 trillion yuan in the first seven months. Among these, household deposits increased by 9.66 trillion yuan, non-financial corporate deposits increased by 310.9 billion yuan, fiscal deposits increased by 2.02 trillion yuan, and deposits from non-bank financial institutions increased by 4.69 trillion yuan.

    At the end of July, the balance of foreign currency deposits stood at 1 trillion USD, up 20% year-on-year. Foreign currency deposits increased by 148.9 billion USD in the first seven months.

    IV. In July, the weighted average monthly interest rate for interbank RMB loans stood at 1.45%, while the weighted average monthly rate for pledged bond repurchase agreements was 1.46%.

    Total transactions in the interbank RMB market—including loans, spot bonds, and repurchase agreements—reached 222.44 trillion yuan in July, with an average daily volume of 9.67 trillion yuan, marking a 14.8% year-on-year increase in average daily turnover. Among these, average daily interbank lending volume grew by 3.1% year-on-year, average daily spot bond trading volume increased by 2.8% year-on-year, and average daily pledged bond repurchase volume rose by 18.6% year-on-year.

    The weighted average interest rate for interbank lending in July was 1.45%, down 0.01 percentage points from the previous month and 0.36 percentage points from the same period last year. The weighted average interest rate for pledged repurchase agreements was 1.46%, down 0.04 and 0.36 percentage points from the previous month and the same period last year, respectively.

    V. Cross-border RMB settlements under the current account reached 1.57 trillion yuan in July, while direct investment settlements amounted to 0.64 trillion yuan

    In July, cross-border RMB settlements for current account transactions totaled 1.57 trillion yuan, comprising 1.15 trillion yuan for goods trade, 0.42 trillion yuan for services trade, and other current account items. Cross-border RMB settlements for direct investment amounted to 0.64 trillion yuan, including 0.22 trillion yuan for outward direct investment and 0.42 trillion yuan for inward direct investment.

    Note 1: Current data are preliminary figures.

    Note 2: Loans to enterprises and institutions in this report refer to loans to non-financial enterprises and government agencies/organizations.

    Note 3: Starting January 2023, the People's Bank of China has included three types of non-deposit-taking financial institutions—consumer finance companies, wealth management companies, and financial asset investment companies—within the scope of financial statistics.

    Note 4: Starting with January 2025 data, the People's Bank of China adopted a newly revised narrow money (M1) statistical definition. The revised M1 includes: currency in circulation (M0), corporate demand deposits, personal demand deposits, and customer reserve funds held by non-bank payment institutions.