(ECNS) – Household savings may have continued to flow into the Chinese A-share market last month, the Beijing Youth Daily reported, citing data released by the central bank on Thursday.
New yuan deposits hit 3.23 trillion yuan ($520.34 billion) in May, an increase of 1.5 trillion yuan from the same period last year, while household savings decreased by 441.3 billion yuan, according to the central bank. New yuan lending beat market expectations to reach 900.8 billion yuan.
Experts say that the central bank needs to further cut the reserve requirement ratio and interest rates.
M2, a broad measure of money supply that covers cash in circulation and all deposits, rose 10.8 percent year-on-year to 130.74 trillion yuan at the end of May, the central bank said.
