21st Century Business Herald:
Why can M2 growth rate maintain a high level? How should we view it? Thank you.
Ruan Jianhong:
I will answer it. At the end of June, the M2 money supply reached 258.15 trillion yuan, an increase of 11.4% year on year, and the growth rate was 0.3 and 2.8 percentage points higher than that at the end of last month and the same period of the previous year, respectively. In terms of deposits, in the first half of this year, RMB deposits increased by 18.82 trillion yuan, a year-on-year increase of 4.77 trillion yuan.
At present, RMB deposits have increased more, and the growth rate of M2 is relatively high, mainly due to the efforts of the financial system to serve the real economy, which leads to an increase in derived currencies.
First, financial institutions support the earlier issuance of government bonds. In the first half of the year, the bond investment of financial institutions increased by 4.68 trillion yuan, a year-on-year increase of 2.82 trillion yuan, of which investment in government bonds increased by 2.72 trillion yuan.
Second, various loans increased steadily. In the year's first half, various loans increased by 13.68 trillion yuan, a year-on-year increase of 919.2 billion yuan.
Third, the central bank turned over 900 billion yuan of profits to increase the financial resources available to the government. After fiscal expenditure, the M2 increased by about 0.4 percentage point.
In addition, this year's monetary and fiscal policy was coordinated well, and the pace of fiscal expenditure accelerated, promoting the increase in the M2 growth rate. In the first half of the year, fiscal deposits increased by 506.1 billion yuan, a decrease of 433.8 billion yuan year on year. Thank you.
