Central Bank of the Republic of China releases May monetary and credit data with M2 up 7.9% and new RMB loans at CNY 10.68 trillion in January to May

The Central Bank of the Republic of China published May monetary and financial statistics showing broad money (M2) rose 7.9% year on year to CNY 325.78 trillion, while narrow money (M1) increased 2.3% to CNY 108.91 trillion. Renminbi loans expanded by CNY 10.68 trillion in January to May and renminbi deposits increased by CNY 14.73 trillion over the same period. At end-May, currency in circulation (M0) stood at CNY 13.13 trillion, up 12.1% year on year, with net cash injections of CNY 306.4 billion in the first five months. Outstanding local and foreign currency loans totalled CNY 270.2 trillion (up 6.7%), including RMB loans of CNY 266.32 trillion (up 7.1%); foreign-currency loans were USD 539.4 billion (down 16.3%) and declined by USD 2.7 billion in January to May. Household RMB loans rose CNY 572.4 billion, with short-term loans falling CNY 262.4 billion and medium- and long-term loans rising CNY 834.7 billion, while loans to non-financial enterprises and government institutions increased CNY 9.8 trillion, including CNY 364.5 billion in bill financing. Deposits totalled CNY 324.08 trillion (up 8.3%), with foreign-currency deposits at USD 990.1 billion (up 19%) and up USD 137.2 billion in January to May. In May, the weighted average interbank lending rate was 1.55% and the pledged repo rate 1.56%, on CNY 167.2 trillion of turnover; current-account cross-border RMB settlement amounted to CNY 1.31 trillion and direct investment settlement to CNY 0.61 trillion. The release notes that figures are preliminary and highlights the revised M1 statistical definition in use from January 2025 and the expanded statistical coverage introduced from January 2023 for certain non-deposit-taking banking financial institutions.