July RMB Deposits Rise Only RMB30 Billion; Household Deposits Fall RMB630 Billion
In July, RMB deposits rose by only RMB30 billion, RMB470 billion less than a year earlier, while household deposits fell by a net RMB630 billion, a decline that was RMB480 billion smaller than a year earlier. Funds shifted to wealth management products, public funds, insurance and early loan repayment. Non-bank financial institution deposits increased by RMB1.11 trillion. By end-2025, bank wealth management and public fund growth reached 10.6% and 14.3%, respectively, with asset management product growth at its highest since the new regulations. These flows diversify household savings and affect bank liability structures, while social financing remains accommodative.
In July, RMB deposits increased by only RMB30 billion, RMB470 billion less than a year earlier. Household RMB deposits fell by a net RMB630 billion, a decline that was RMB480 billion smaller than a year earlier. Deposits at non-bank financial institutions rose by RMB1.11 trillion, an increase that was RMB1.03 trillion less than a year earlier. Household deposits shifted toward bank wealth management products, public funds, insurance and early loan repayment.
As of the end of October 2025, the growth rate of asset management product scale reached its highest level since the implementation of the new asset management regulations. As of the end of 2025, the growth rates of bank wealth management and public funds reached 10.6% and 14.3%, respectively. Asset management product funds are mainly invested in deposits, certificates of deposit, bonds, stocks and non-standardized debt assets.
When asset management products invest in interbank deposits and certificates of deposit, they increase non-bank institutions' deposits at banks; when they invest in other underlying assets, those funds ultimately convert into deposits of enterprises and related institutions, flowing back into the banking system. The accelerated development of direct financing has made household savings allocation more diversified between bank deposits and financial assets such as asset management products, affecting the structure of banks' liability side. The current social financing environment remains accommodative, and financial support for the real economy is solid.