China new yuan lending up 20.7B yuan in June, reserves hit $3.2t

Yuan notes being counted at an ICBC branch in Anhui province

July 12 -- China recorded new yuan-denominated lending of 633.9 billion yuan in June, an increase of 20.7 billion yuan year-on-year, according to The People's Bank of China (PBOC), China's central bank. New yuan lending in May was 551.6 billion yuan.

Total yuan lending in the first half of 2011 increased 4.17 trillion yuan, a drop of 449.7 billion yuan year-on-year.

The loan balance as of end June totaled 54.65 trillion yuan, up 16.8 percent from the same period a year ago. Of the total, yuan-denominated loans accounted for 51.4 trillion yuan, an increase of 16.9 percent year-on-year.

The growth rate was down 0.2 percentage point from end May and three percentage points from end 2010.

Loans denominated in foreign currencies increased $51.3 billion in the first half of the year.

Loans to residents increased 1.46 trillion yuan during the first six months, of which medium and long-term loans rose 858.8 billion yuan.

Loans to non-financial enterprises increased 2.7 trillion yuan, of which medium and long-term loans accounted for 1.43 trillion yuan.

China's foreign exchange reserves rose 30.3 percent year-on-year to $3.198 trillion yuan as of end June.

The balance of broad money supply M2 rose 15.9 percent year-on-year to 78.08 trillion yuan as of end June. The growth rate was up 0.8 percentage point from end May. Compared with end 2010, it was down 3.8 percentage points.

The total deposit balance was up 17.5 percent year-on-year to 80.3 trillion yuan as of end June, of which yuan-denominated deposits accounted for 78.64 trillion yuan, up 17.6 percent year-on-year.

New yuan-denominated deposits increased 7.34 trillion yuan in the first six months, a decline of 184.6 billion yuan from the same period a year ago.

The weighted average interbank lending rate hit 4.56 percent in June, up 1.63 percentage points from May and 1.64 percentage points from December 2010.