China financial landscape has shown notable growth in the first half of 2025, with an increase in money supply, loans, deposits, and foreign exchange reserves. The People’s Bank of China recently released data that sheds light on the country’s economic stability and growth prospects. This report outlines key monetary and financial developments from the first half of the year.

1. Broad Money Supply Growth of 8.3%

As of June 2025, the broad money supply (M2) in China reached 330.29 trillion yuan, reflecting an 8.3% increase year-on-year. The narrow money supply (M1) was 113.95 trillion yuan, growing by 4.6% from the previous year. Meanwhile, the total money in circulation (M0) amounted to 13.18 trillion yuan, marking a significant 12% growth. The net cash injection in the first half of the year stood at 363.3 billion yuan.

2. Yuan Loans See a 12.92 Trillion Yuan Increase

The outstanding balance of domestic and foreign currency loans by the end of June reached 272.57 trillion yuan, a 6.8% increase from the previous year. Domestic yuan loans accounted for 268.56 trillion yuan, showing a 7.1% year-on-year rise. In the first half of the year, yuan loans increased by 12.92 trillion yuan. Household loans rose by 1.17 trillion yuan, with a shift from short-term loans to medium- and long-term loans. Loans to enterprises increased by 11.57 trillion yuan, with a decrease in short-term loans but an uptick in medium- and long-term loans. Foreign currency loans, however, dropped by 10.6% year-on-year, standing at 560.9 billion USD.

3. Yuan Deposits Increase by 17.94 Trillion Yuan

As of June, the total value of domestic and foreign currency deposits stood at 327.46 trillion yuan, showing an 8.6% rise compared to the previous year. Yuan deposits totaled 320.17 trillion yuan, up 8.3% year-on-year. The first half of 2025 saw an increase of 17.94 trillion yuan in yuan deposits. Household deposits grew by 10.77 trillion yuan, non-financial corporate deposits by 1.77 trillion yuan, and deposits from non-bank financial institutions by 2.55 trillion yuan. Additionally, foreign currency deposits reached 1.02 trillion USD, up 21.7% from last year, with an increase of 165.5 billion USD in the first half of the year.

4. Monthly Interbank Loan Rates and Trading Volumes

In June, the average monthly interest rate for interbank RMB loans was 1.46%, reflecting a 0.09 percentage point drop from May 2025 and a 0.41 percentage point decrease compared to the same period in 2024. The average interest rate for pledged bond repurchases stood at 1.5%, down by 0.06 percentage points from the previous month. The interbank market in the first half of the year saw a total turnover of 974.04 trillion yuan in short-term loans, cash bonds, and repurchases, with an average daily turnover of 8.12 trillion yuan, marking a 4.4% decline year-on-year.

5. Foreign Exchange Reserves Reach 3.32 Trillion USD

By the end of June 2025, China’s foreign exchange reserves totaled 3.32 trillion USD, reinforcing the country’s economic strength. The RMB exchange rate stood at 7.1586 RMB per USD, reflecting stability in China’s currency market.

6. Cross-Border RMB Settlement Shows Robust Growth

In the first half of 2025, cross-border RMB settlement under the current account reached 8.3 trillion yuan, with goods trade, services trade, and other current items contributing 6.38 trillion yuan and 1.92 trillion yuan, respectively. For direct investment, RMB cross-border settlement totaled 4.11 trillion yuan, with foreign direct investment and inward foreign direct investment contributing 1.46 trillion yuan and 2.65 trillion yuan, respectively.