Financial Operation in First Three Quarters of 2007

Financial Operation in First Three Quarters of 2007 　China's central bank recently publicised the financial statistics data in the third quarter of this year and stated that the money credit and loan growth in the first three quarters of the year was basically geared to the economic growth and the financial operation was generally stable, as the central bank, since this year, has implemented the appropriately tight monetary policy, taken a series of comprehensive measures on strengthening financial control and safeguarding the balance of economic aggregate. - Money supply grew steadily. At the end of September 2007, the outstanding of China's broad money supply (M2) stood at RMB39.31 trillion, up 18.45 percent year on year, and the growth was 1.39 percentage points higher than that at the end of previous quarter and 0.36 percentage points higher than that at the end of previous month. The outstanding of narrow money supply (M1) was RMB14.26 trillion, up 22.07 percent, and the growth climbed up 1.15 percentage points over the end of the previous quarter, but slipped 0.7 percentage points from the end of previous month. The outstanding of money in circulation was RMB2.90 trillion, up 13.01 percent. In January-September of this year, China has injected a net of RMB195.8 billion, into circulation, an increase of RMB30.2 billion over the year-earlier period. All renminbi deposits with financial institutions picked up. At the end of September, the outstanding of all local and foreign currency deposits with financial institutions in China amounted to RMB39.49 trillion, up 16 percent year on year. The outstanding of all Renminbi deposits accounted for RMB38.30 trillion, up 16.84 percent, and the growth rose 0.85 percentage points over the end of the previous quarter and 0.32 percentage points over the end of previous month. All Renminbi deposits increased RMB4.75 trillion from January to September, expanding RMB589.3 billion as compared with the increase in the year-earlier period. In breakdown, the deposits of residents increased RMB762.1 billion; deposits of non-financial companies, RMB2.89 trillion; and fiscal deposits, RMB1.03 trillion. New renminbi deposits in September came to RMB556.5 billion, adding RMB169.3 billion year on year. The outstanding of all foreign currency deposits stayed at US$159.3 billion at the end of September, down 0.84 percent year on year. All foreign currency deposits in the first three quarters of this year decreased US$2.2 billion, losing US$10.5 billion as compared US$8.3 billion of foreign currency deposits added in the same period of last year. All foreign currency deposits in September shrank US$3.4 billion, losing an additional US$3.6 billion on a year on year basis. (Foreign currency deposits added US$200 million in September of last year.) - Growth of all Renminbi loans with financial institutions is basically adapted to the economic growth. At the end of September, the outstanding of all local and foreign currency loans with financial institutions in China reached RMB27.44 trillion, up 17.34 percent year on year. The outstanding of all Renminbi loans added up to RMB25.90 trillion, up 17.13 percent, which was 0.65 percentage points higher than the growth at the end of the previous quarter and 0.11 percentage points higher than the growth at the end of the previous month. All Renminbi loans with financial institutions increased RMB3.36 trillion between January and September, growing RMB607.3 billion year on year on a comparable basis. In breakdown, loans of residents increased RMB1.06 trillion, growing RMB516.4 billion year on year on a comparable basis. They included RMB376.9 billion of short-term loans and RMB679.9 billion of long and mid-term loans. Loans of non-financial companies and other departments increased RMB2.3 trillion, growing RMB90.9 billion year on year on a comparable basis. They included RMB1.04 trillion of short-term loans and RMB1.39 billion of long and mid-term loans. Meanwhile, the amount of bill financing decreased RMB148 billion. In September, additional Renminbi loans went up to RMB283.5 billion, RMB63.5 billion more than the year-earlier period. The outstanding of foreign currency loans with financial institutions at the end of September hit US$205.7 billion, jumping 27.26 percent year on year. All foreign currency loans had an increase of US$37 billion in the first three quarters of this year, US$25.2 billion more than the increase of the year-earlier period. New foreign currency loans in September amounted to US$8.6 billion, US$8.4 billion more than that of the same month of last year.
- Interest rate on the inter-bank market picked up. In September, the transaction volume of renminbi on the inter-bank market aggregated to RMB8.5 trillion in September, with a daily trading volume averaging RMB386.3 billion, which grew 112.8 percent or RMB204.8 billion year on year. - The monthly weighted interest rate of inter-bank loans on the interbank market averaged 3.36 percent in September, up 1.36 percentage points over August and 0.97 percentage points over June; and the monthly weighted interest rate of hypothecated bond repo averaged 4.03 percent, up 1.98 percentage points over August and 1.56 percentage points over June. - The state's foreign exchange reserve increased. At the end of September 2007, the outstanding of state's foreign exchange reserve amounted to US$1,433.6 billion, soaring 45.11 percent year on year. The state's foreign exchange reserve had an increase of US$367.3 billion in the first three quarters of this year, which was US$198.3 billion more than the growth of a year ago. The foreign exchange reserve added US$25 billion in September, US$9.1 billion more than the growth of a year ago. The exchange rate of the Renminbi against the US dollar was 7.5108:1 at the end of September.