China's Central Bank Says Financial Situation Healthy 　　China maintained a healthy financial situation in the first half of the year, with currency supplies increasing fast, bank deposits on the rise, bank loans appropriate, foreign exchange reserves rising, and the renminbi remaining stable, the People's Bank of China, the central bank, said in Beijing Monday. 　　It says that the increase of currency supplies accelerated in the January-June period. By the end of June, the amount of broad money (currency in circulation plus corporate deposits and savings deposits) had reached 11.136 trillion yuan, 17.7 percent more than in the same period last year and the amount of narrow money (cash plus demand deposits) grew 14.9 percent to 3.38 trillion yuan. Cash in circulation picked up 11.9 percent to 1,088 trillion yuan. 　　By the end of June, bank deposits totaled 10.276 trillion yuan, 18.3 percent more than in last year's same period; with 5,9 trillion in savings, an increase of 18.5 percent. 　　However, the increase in savings in June was slower than for the previous five months, indicating that the public are starting to spend or invest more thanks to the national monetary policies. Financial departments took steps to prevent potential financial risks and improve their service and have tried to lend more to spur the national economy. 　　By the end of June, bank loans amounted to 9.06 trillion yuan, 15 percent more than for the same time last year. Medium and long-term loans and loans for infrastructure increased the most. 　　By June 30, China's foreign exchange reserves totaled US$147 billion, 2.09 billion more than at the beginning of the year and the conversion rate of the renminbi to the US dollar stood at 8.278 yuan, basically unchanged from the beginning of the year. Economicnews 1999-07-13 Page2 Full Story in Chinese