China Finance

In the first half of 2005, under the steering of the State Council, the People's Bank of China (PBC) continued to pursue the sound monetary policy, appropriately controlled money and credit aggregates by using a mix of monetary policy instruments, and guided the commercial banks to optimize credit structure. In general, appropriate growth of money and credit has contributed to the stable performance of the financial industry. .
The PBC statistics showed that, in January 2005, the performance of financial industry remained sound and stable. In particular, broad money (M2) and all loans witnessed steady increase, growth of savings deposits decelerated, deposits of non-financial institutions saw evident decline due to the seasonal factor of the Spring Festival, inter-bank market witnessed increasing turnover of transactions with interest rates in the money market being at a relatively low level, and the RMB exchange rate remained stable.

New RMB loans in January alone increased by RMB26.9 billion yuan to RMB280.9 billion yuan. In particular, new short-term loans and paper finance in January increased by RMB30.1 billion yuan to RMB150.3 billion yuan; new medium- and long-term loans increased by RMB3.4 billion yuan to RMB124.8 billion yuan. New household loans went up by RMB3.9 billion yuan to RMB80.8 billion yuan, and loans by non-financial institutions and other sectors grew by RMB23 billion yuan to RMB200.1 billion yuan.