PBOC August Data: New Yuan Deposits Rise 1.2 Trillion Yuan, M2 Up 7.5%

The People's Bank of China released financial data for August 2026 on September 14. New yuan deposits totaled RMB1.2 trillion in August 2026, a year-on-year decrease of RMB860 billion. Non-bank deposits rose by RMB560 billion, down RMB620 billion from a year earlier. Non-financial corporate deposits increased by RMB280 billion, RMB19.7 billion less than a year earlier; fiscal deposits rose by RMB110 billion, down RMB80 billion year on year; and household deposits increased by RMB40 billion, down RMB70 billion year on year. Growth in corporate, fiscal and household deposits all declined from a year earlier.

In August 2025, new yuan deposits reached RMB2.06 trillion, a high for the same period in history; non-bank deposits rose by RMB1.18 trillion in that single month, also a historical high for the period. In July 2026, household deposits fell by RMB630 billion, while non-bank deposits rose by RMB1.11 trillion. In August 2026, household deposits increased by RMB40 billion and non-bank deposits by RMB560 billion, with non-bank deposits RMB550 billion lower than the previous month. In the first eight months of the year, household deposits were RMB2.78 trillion lower than a year earlier, while non-bank deposits were RMB450 billion higher.

At the end of August 2026, M2 grew 7.5% year on year, 0.2 percentage points slower than the previous month; M1 grew 4.1% year on year, 0.1 percentage point faster than the previous month, slightly narrowing the M1-M2 gap. In August 2026, fiscal deposits increased by RMB110 billion, down RMB80 billion year on year and RMB868.5 billion month on month. The renminbi continued to appreciate in August 2026, with foreign exchange settlement demand from the private sector driving an increase in funds outstanding for foreign exchange. A meeting of the Political Bureau of the CPC Central Committee on July 30, 2026 called for "stepping up countercyclical adjustment" in the second half of 2026 and for the "comprehensive use and timely adjustment of monetary policy tools."