Central Bank of China

PRESS RELEASE Release Date: December 25, 2002




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Financial Conditions (November 2002)

Monetary Aggregates For the month of November 2002, the annual growth rates of the monetary aggregates M1A, M1B and M2, measured on a daily average basis, were 11.24%, 15.23%, and 2.86%, respectively. While the M1B growth rate was lower than that in the previous month due to last year's higher base, both M1A and M2 growth rates rose from those in the previous month. The M2 aggregate plus bond funds held by the general public posted an annual growth rate of 4.56% for the month. The higher M2 growth was mainly due to the increase in net foreign capital inflows as well as the successive increase in net foreign exchange proceeds from external trade. For the first eleven months of this year, M2 exhibited an average annual growth rate of 3.62%.

Direct and Indirect Finance At the end of November, the annual growth rate of total loans and investments in major financial institutions, including monetary institutions and the Postal Savings System, declined from "3.16% at the end of the previous month to "3.48% mainly because of the decrease in claims on government. 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 3.38% for the month.

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