Central Bank of China: Broad money (M2) balance increased by 7.5% year-on-year at the end of August

China News Service, Beijing, September 14 (Tao Siyue) The latest data released by the Central Bank of China on the 14th showed that at the end of August, the balance of broad money (M2) was 356.81 trillion yuan (RMB, the same below), a year-on-year increase of 7.5%. The balance of narrow currency (M1) was 115.77 trillion yuan, a year-on-year increase of 4.1%. The balance of currency (M0) in circulation was 14.83 trillion yuan, a year-on-year increase of 11.2%. Net cash injection in the first eight months was 736.4 billion yuan.

The increase in the balance of M2 reflects the increase in money supply. M2 is created in various ways such as banks issuing loans and purchasing bonds.

Data released that day also showed that at the end of August, the balance of various RMB loans was 282.35 trillion yuan, a year-on-year increase of 4.9%. From a structural point of view, the balance of inclusive small and micro loans was 38.13 trillion yuan, a year-on-year increase of 8.3%; the balance of medium and long-term loans in the service industry excluding the real estate industry was 62.25 trillion yuan, a year-on-year increase of 9.3%. The growth rates of the above loans were higher than the growth rates of various loans in the same period.

From the perspective of loan investment, loans in the current financial "five big articles" fields (technological finance, green finance, inclusive finance, pension finance, and digital finance) continue to maintain double-digit growth rates, and the proportion of incremental loans in various loan increments has increased to more than 70%. Credit resources are flowing more to new driving forces such as technological innovation and green transformation.

Meanwhile, loan rates remain at historically low levels. The weighted average interest rate of new corporate loans in August was slightly lower than 3%, about 0.2 percentage points lower than the same period last year; the weighted average interest rate of new personal housing loans was about 3.1%, the same as the same period last year.

Industry experts said that the central bank has recently introduced several reform measures to improve the short-end interest rate control mechanism, further improving the accuracy and effectiveness of liquidity management. The reform of loan interest rate pricing benchmarks is also continuing to advance. DR (depository financial institution bond repurchase rate) benchmark interest rate loans have been implemented in many provinces across the country, and the loan interest rate market-based pricing system has been further improved.