Central Bank of China

PRESS RELEASE Release Date: October 25, 2002




--------------------------------------------------------------------------------

Financial Conditions (September 2002)

Monetary Aggregates For the month of September 2002, the annual growth rates of the monetary aggregates M1A, M1B and M2, measured on a daily average basis, were 11.48%, 18.16%, and 2.77%, respectively, all of which fell from the figures recorded in the previous month. The M2 aggregate plus bond funds held by the general public posted an annual growth rate of 5.00% for the month. The lower M2 growth was mainly due to the decrease in net foreign exchange proceeds from external trade, as well as the successive increase in net foreign capital outflows. For the first nine months of this year, M2 exhibited an average annual growth rate of 3.82%.

Direct and Indirect Finance At the end of September, the annual growth rate of total loans and investments in major financial institutions, including monetary institutions and the Postal Savings System, rose from "3.68% at the end of the previous month to "3.22%. The rise was mainly due to the lower base of the corresponding month of the previous year and the increase in bank loans to private enterprises as compared with the previous month. If loans and investments extended by life insurance companies and investment and trust companies, major financial institutions' reclassifying non-accrual loans and writing-off bad loans, as well as funds raised directly from financial markets were taken into account, the total funds raised by non-financial sectors showed an annual growth rate of 3.43% for the month.

Tables[EXCEL][PDF]