Central Bank: The M2 balance at the end of August was 305.05 trillion yuan, a year-on-year increase of 6.3%.

On September 13th, according to data from the People's Bank of China, at the end of August, the broad money supply (M2) balance was 305.05 trillion yuan, an increase of 6.3% year-on-year. The narrow money supply (M1) balance was 63.02 trillion yuan, a decrease of 7.3% year-on-year. The currency in circulation (M0) balance was 11.95 trillion yuan, an increase of 12.2% year-on-year. A net cash injection of 602.8 billion yuan was made in the first eight months. 2024 August Financial Statistics Report I. Broad money supply growth of 6.3% At the end of August, the broad money supply (M2) balance was 305.05 trillion yuan, an increase of 6.3% year-on-year. The narrow money supply (M1) balance was 63.02 trillion yuan, a decrease of 7.3% year-on-year. The currency in circulation (M0) balance was 11.95 trillion yuan, an increase of 12.2% year-on-year. A net cash injection of 602.8 billion yuan was made in the first eight months. II. RMB loans increased by 14.43 trillion yuan in the first eight months At the end of August, the total RMB and foreign currency loan balance was 256.24 trillion yuan, an 8% year-on-year increase. The RMB loan balance was 252.02 trillion yuan, an increase of 8.5% year-on-year. RMB loans increased by 14.43 trillion yuan in the first eight months. Breakdown shows that household loans increased by 1.44 trillion yuan, with short-term loans increasing by 132.4 billion yuan, medium and long-term loans increasing by 1.31 trillion yuan; loans to enterprises and institutions increased by 11.97 trillion yuan, with short-term loans increasing by 2.37 trillion yuan, medium and long-term loans increasing by 8.7 trillion yuan, and bill financing increasing by 759.7 billion yuan; loans to non-bank financial institutions increased by 459.1 billion yuan. At the end of August, the foreign currency loan balance was 594 billion US dollars, a decrease of 13.8% year-on-year. Foreign currency loans decreased by 62.4 billion US dollars in the first eight months. III. RMB deposits increased by 12.88 trillion yuan in the first eight months At the end of August, the total RMB and foreign currency deposit balance was 303.21 trillion yuan, an increase of 6.6% year-on-year. The RMB deposit balance was 297.14 trillion yuan, an increase of 6.6% year-on-year. RMB deposits increased by 12.88 trillion yuan in the first eight months. Among them, household deposits increased by 9.65 trillion yuan, non-financial corporate deposits decreased by 2.88 trillion yuan, government deposits increased by 960.6 billion yuan, and non-bank financial institution deposits increased by 3.59 trillion yuan. At the end of August, the foreign currency deposit balance was 853.1 billion US dollars, an increase of 7.3% year-on-year. Foreign currency deposits increased by 55.3 billion US dollars in the first eight months. IV. In August, the weighted average interest rate for interbank RMB lending was 1.77%, and for pledged bond repurchase it was 1.79%. In August, the interbank RMB market transactions through lending, bond issuance, and repurchase totaled 181.78 trillion yuan, with a daily average of 8.26 trillion yuan, a 11.2% decrease year-on-year. Among them, interbank lending transactions decreased by 27.2% year-on-year, bond issuance transactions decreased by 1.6% year-on-year, and repurchase transactions decreased by 12% year-on-year. In August, the weighted average interest rate for interbank lending was 1.77%, a decrease of 0.04 percentage points from the previous month and an increase of 0.06 percentage points from the same period last year. The weighted average interest rate for pledged bond repurchase was 1.79%, a decrease of 0.03 percentage points from the previous month and an increase of 0.03 percentage points from the same period last year. V. In August, the cross-border settlement amount for current account transactions in RMB was 1.26 trillion yuan, and for direct investment cross-border settlement it was 0.59 trillion yuan. In August, the cross-border settlement amount for current account transactions in RMB was 1.26 trillion yuan, with trade in goods, trade in services, and other current account transactions accounting for 0.93 trillion yuan, 0.33 trillion yuan, respectively; the cross-border settlement amount for direct investment in RMB was 0.59 trillion yuan, with outbound direct investment and in foreign direct investment accounting for 0.2 trillion yuan, 0.39 trillion yuan, respectively. This article is excerpted from "People's Bank of China", edited by Li Fo.