China's enterprises saved more money last year although individuals were keeping less dough in their pockets, according to statistics released on January 12 by the People's Bank of China.

Despite the savings differences, both have similar effects on the economy, the central bank said.

Increased savings growth by firms indicates the growing activity of corporate circles, while the dwindling personal savings expansion means people are spending more for consumption or are making other investments, experts said.

Outstanding savings deposits by enterprises last year grew 14.5 per cent compared to 13.4 per cent in 1998.

Meanwhile, outstanding personal savings deposits for 1999 were up 11.6 per cent, down from 17.1 per cent from the year before.

The expansion of deposits by enterprises upped the money supply growth, a key indicator for policy-makers and economists observing the macroeconomics situation.

Money supply is reflected primarily by two measurements - M1 and M2. M1, which includes circulating cash and institutional deposits, is used to observe the sentiment of the corporate sector. M2 covers cash in circulation and an array of deposits.

1999's M1 grew 17.7 per cent at the end of the compared to 11.9 per cent a year ago.

M2 growth stood at 14.7 per cent, meeting the official target of between 14 and 15 per cent. (China Daily)