CNBC AI News, July 15th – China’s central bank unveiled its economic data for the first half of the year, signaling a notable upturn. Key indicators include a 4.2 trillion yuan increase in aggregate social financing and a 2.24 trillion yuan rise in new RMB loans. Furthermore, the narrowing gap between M2 and M1 suggests that monetary policies are increasingly effective in supporting the real economy.
The data also revealed a significant increase in household deposits, reaching 162.02 trillion yuan by the end of June 2025, a 7.42% increase, or 10.77 trillion yuan added during the first half of the year. Concurrently, household loans outstanding rose by 1.17 trillion yuan to 84 trillion yuan, a modest increase of 1.4%. Both resident deposit and loan balances have hit all-time highs, leaving a net deposit balance exceeding 78 trillion yuan.
If current trends continue, the average savings per person is about 105,000 yuan, interest rates are declining, but deposits are surging, this is indeed a very interesting phenomenon.
Beneath the surface, the growth rate of household loans has slowed considerably since the weakening of the real estate market in 2021. From the beginning of 2021 to the present, household loans have increased by 19.54 trillion yuan, an average annual increase of 4.34 trillion yuan. This contrasts sharply with the period between 2016 and 2020 when the property market was relatively buoyant. During those five years, household loans outstanding increased by 37.1 trillion yuan, averaging 7.42 trillion yuan per year.
Correspondingly, the growth rate of household deposits is accelerating. In the first half of this year, the year-on-year increase in household deposits exceeded 1.5 trillion yuan, with the growth rate increasing by 0.72 percentage points compared to the same period last year.
Original article, Author: Tobias. If you wish to reprint this article, please indicate the source:https://aicnbc.com/4746.html
