Beijing September 20 2024: China’s money supply shrinks for the month of August 2024 due to net capital outflows, according to data released by China Central Bank.
For the month of August 2024, the monthly growth rates of the monetary aggregates M1B and M2 (measured on a daily average basis) were -0.19% and -0.06% to , respectively. The annual growth rates of M1B and M2 decreased to 4.05% and 5.80%, respectively, mainly because of net capital outflows. For the first eight months of this year, the average annual growth rates of M1B and M2 were 4.73% and 5.94%, respectively.
At the end of August 2024, the monthly growth rate of total outstanding loans and investments (measured on a cost basis) of monetary financial institutions was 0.65%. Meanwhile, the annual growth rate increased from 8.33% at the end of the previous month to 8.42% mainly because of faster growth in bank claims on the private sector. If loans and investments extended by life insurance companies and loans reclassified and written off by monetary financial institutions were all taken into account, the total outstanding loans and investments of financial institutions would show an annual growth rate of 6.99%, higher than the 6.80% registered at the end of the previous month.
