Shanghai banks' RMB deposits hit record high in Feb

RMB deposits in Shanghai's banks surged to a record high in February, due to interest rate hikes and the lackluster stock and property markets, according to sources.

The Shanghai headquarters of the People's Bank of China drew deposits of RMB165.16 billion (US$23.3 billion) in February, an increase of RMB 149.26 billion or 339% from the same month in 2007.

Meanwhile, Shanghai's foreign-funded financial institutions drew foreign-currency-denominated deposits of US$520 million, an increase of US$460 million year-on-year.

In February, the loans made by Chinese banks for individual home buyers were only RMB 6 million, dropping RMB 200 million year-on-year, and the foreign-funded banks made RMB 170 million in loans for the individual buyers, down RMB 110 million from the year earlier. The decline resulted from the slump in real estate trading, and a shortage of newly built commercial housing.