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(xhyyt)
Updated: 2007-08-13 14:01

BEIJING -- China's money supply continued to grow in July, according to the People's Bank of China (PBOC).

By the end of July, the broad measure of the money supply, M2, which covers cash in circulation and all deposits, went up 18.5 percent year-on-year to 38.4 trillion yuan.

The newly-added yuan-denominated deposits in July reached 158.5 billion yuan, 18.1 billion yuan more than the same month last year.

By the end of July, the narrow measure of the money supply, or M1, was 13.62 trillion yuan, up 21 percent.

M1 is an antecedent index for a country's economic performance, reflecting the change in the amount of money in the hands of residents and enterprises, while M2 shows the demand of the whole of society and indicates possible inflation.

Bank figures also indicated that the outstanding renminbi-dominated deposits had risen 16 percent year-on-year by the end of July to 37.1 trillion yuan.

The outstanding renminbi-dominated loans amounted to 25.3 trillion yuan in July, up 16.6 percent.