Core Insights - The People's Bank of China released the financial market operation data for July 2025, indicating a positive trend in interbank lending and bond repurchase transactions [1] Interbank Lending Market - In July, the interbank lending market recorded a transaction volume of 9.8 trillion yuan, representing a year-on-year increase of 3.1% and a month-on-month increase of 16.6% [1] - The weighted average interest rate for interbank lending was 1.45%, showing a slight decrease of 1 basis point month-on-month [1] Bond Repurchase Market - The bond repurchase transactions totaled 175.3 trillion yuan in July, which is an 18.5% increase year-on-year and a 12.2% increase month-on-month [1] - Standard bond repurchase transactions on exchanges reached 57.4 trillion yuan, reflecting a year-on-year growth of 21.1% and a month-on-month increase of 13.5% [1] - The weighted average interest rate for pledged repos was 1.46%, down by 4 basis points from the previous month [1]

Core Insights - The People's Bank of China released the financial market operation data for July 2025, indicating a robust performance in interbank lending and bond repurchase markets [1] Group 1: Interbank Lending Market - In July, the interbank lending market recorded a transaction volume of 9.8 trillion yuan, representing a year-on-year increase of 3.1% and a month-on-month increase of 16.6% [1] - The weighted average interest rate for interbank lending was 1.45%, showing a slight decrease of 1 basis point month-on-month [1] Group 2: Bond Repurchase Market - The bond repurchase market saw a transaction volume of 175.3 trillion yuan in July, which is an 18.5% increase year-on-year and a 12.2% increase month-on-month [1] - Standard bond repurchase transactions on exchanges reached 57.4 trillion yuan, marking a year-on-year growth of 21.1% and a month-on-month increase of 13.5% [1] - The weighted average interest rate for pledged repos was 1.46%, down by 4 basis points from the previous month [1]

Monetary Statistics - As of the end of July, the broad money supply (M2) reached 329.94 trillion yuan, with a year-on-year growth of 8.8% [1] - The narrow money supply (M1) stood at 111.06 trillion yuan, growing by 5.6% year-on-year [1] - The currency in circulation (M0) amounted to 13.28 trillion yuan, reflecting a year-on-year increase of 11.8% [1] - In the first seven months, a net cash injection of 465.1 billion yuan was recorded [1] Loan Statistics - By the end of July, the total outstanding loans in both domestic and foreign currencies reached 272.48 trillion yuan, with a year-on-year increase of 6.7% [1] - The outstanding RMB loans were 268.51 trillion yuan, growing by 6.9% year-on-year [1] - In the first seven months, RMB loans increased by 1.287 trillion yuan, with household loans rising by 680.7 billion yuan [1] - Corporate loans increased by 1.163 trillion yuan, with short-term loans up by 375. billion yuan and medium to long-term loans up by 691 billion yuan [1] - Foreign currency loans totaled 55.58 billion USD, showing a year-on-year decline of 8.1% [1] Deposit Statistics - As of the end of July, the total deposits in both domestic and foreign currencies reached 327.83 trillion yuan, with a year-on-year growth of 9% [2] - The RMB deposits were 320.67 trillion yuan, reflecting an 8.7% year-on-year increase [2] - In the first seven months, RMB deposits increased by 1.844 trillion yuan, with household deposits rising by 966 billion yuan [2] - Foreign currency deposits reached 1 trillion USD, growing by 20% year-on-year [2] Interbank Market Activity - In July, the total transaction volume in the interbank RMB market was 222.44 trillion yuan, with an average daily transaction of 9.67 trillion yuan, marking a year-on-year increase of 14.8% [2] - The weighted average interest rate for interbank borrowing was 1.45%, lower than both the previous month and the same period last year [2] - The weighted average interest rate for pledged repos was 1.46%, also lower than the previous month and the same period last year [2] Cross-Border RMB Settlement - In July, the cross-border RMB settlement amount under the current account was 1.57 trillion yuan, with goods trade accounting for 1.15 trillion yuan [3] - Direct investment cross-border RMB settlement amounted to 0.64 trillion yuan, with outbound direct investment at 0.22 trillion yuan and foreign direct investment at 0.42 trillion yuan [3]

Monetary Policy and Financial Data - As of the end of July, the broad money supply (M2) reached 329.94 trillion yuan, showing a year-on-year growth of 8.8%, up from 8.3% at the end of June [1] - The narrow money supply (M1) stood at 111.06 trillion yuan, with a year-on-year increase of 5.6% [1] - The cash in circulation (M0) was 13.28 trillion yuan, reflecting a year-on-year growth of 11.8% [1] - In the first seven months, net cash injection amounted to 465.1 billion yuan [1] Lending and Deposits - In the first seven months, RMB loans increased by 12.87 trillion yuan, slightly down from 12.92 trillion yuan in the first half of the year [2] - Household loans rose by 680.7 billion yuan, with short-term loans decreasing by 383 billion yuan and medium to long-term loans increasing by 1.06 trillion yuan [2] - Corporate loans increased by 11.63 trillion yuan, with short-term loans up by 3.75 trillion yuan and medium to long-term loans rising by 6.91 trillion yuan [2] - RMB deposits increased by 18.44 trillion yuan in the first seven months, compared to 17.94 trillion yuan in the first half [7] - Household deposits grew by 9.66 trillion yuan, while non-financial corporate deposits increased by 310.9 billion yuan [7] Cross-Border Transactions - In July, the cross-border RMB settlement amount under the current account was 1.57 trillion yuan, with goods trade accounting for 1.15 trillion yuan and services trade for 420 billion yuan [4] Government Bonds and Investment - The National Development and Reform Commission has allocated 188 billion yuan in special long-term bonds to support equipment renewal investments, impacting approximately 8,400 projects and driving total investment over 1 trillion yuan [5] Cryptocurrency Market - Bullish, a cryptocurrency trading platform, announced an IPO aiming to raise 1.11 billion USD, pricing shares at 37 USD each, with over 20 times oversubscription [6] Interest Rates and Market Activity - The weighted average interest rate for interbank borrowing in July was 1.45%, down 0.01 percentage points from the previous month and 0.36 percentage points year-on-year [11] - Daily average transactions in the interbank RMB market reached 9.67 trillion yuan, with a year-on-year increase of 14.8% [11] Consumer Lending - The interest rate for consumer loan subsidies has been reduced to around 1%, significantly lowering financing costs for consumers [8][9]

Group 1 - The broad money supply (M2) increased by 8.8% year-on-year, reaching 329.94 trillion yuan by the end of July [2] - The narrow money supply (M1) grew by 5.6% year-on-year, totaling 111.06 trillion yuan, while the currency in circulation (M0) rose by 11.8% to 13.28 trillion yuan [2] - A net cash injection of 465.1 billion yuan occurred in the first seven months of the year [2] Group 2 - The total RMB loans increased by 12.87 trillion yuan in the first seven months, with the RMB loan balance reaching 268.51 trillion yuan, a year-on-year growth of 6.9% [3] - Household loans increased by 680.7 billion yuan, with short-term loans decreasing by 383 billion yuan and medium to long-term loans increasing by 1.06 trillion yuan [3] - Corporate loans rose by 11.63 trillion yuan, with short-term loans increasing by 3.75 trillion yuan and medium to long-term loans increasing by 6.91 trillion yuan [3] Group 3 - RMB deposits increased by 18.44 trillion yuan in the first seven months, with the total RMB deposit balance reaching 320.67 trillion yuan, a year-on-year growth of 8.7% [4] - Household deposits rose by 9.66 trillion yuan, while non-financial corporate deposits increased by 310.9 billion yuan [4] - Foreign currency deposits reached 1 trillion USD, growing by 20% year-on-year, with an increase of 148.9 billion USD in the first seven months [4] Group 4 - The weighted average interest rate for interbank RMB market lending was 1.45% in July, down 0.01 percentage points from the previous month and 0.36 percentage points from the same period last year [5] - The total transaction volume in the interbank RMB market reached 222.44 trillion yuan in July, with an average daily transaction of 9.67 trillion yuan, reflecting a year-on-year growth of 14.8% [5] - The weighted average interest rate for pledged bond repos was 1.46%, also lower than the previous month and the same period last year [5] Group 5 - The cross-border RMB settlement amount under the current account was 1.57 trillion yuan in July, with goods trade accounting for 1.15 trillion yuan and services trade for 420 billion yuan [6] - The cross-border RMB settlement amount for direct investment was 640 billion yuan, with outbound direct investment at 220 billion yuan and foreign direct investment at 420 billion yuan [6]

Core Insights - The central bank reported that in May, the weighted average interbank lending rate was 1.55%, which represents a month-on-month decrease of 18 basis points [1] - The weighted average rate for pledged repos was 1.56%, showing a month-on-month decline of 16 basis points [1] Summary by Category - **Interest Rates** - The interbank lending rate decreased to 1.55%, down by 18 basis points from the previous month [1] - The pledged repo rate fell to 1.56%, a reduction of 16 basis points compared to the prior month [1]