Chinanews, Shanghai, Apr. 12 – During the first quarter of this year, foreign banks in Shanghai saw a surge in their Renminbi deposit service, with the balance of Renminbi deposits in these banks increasing by 57.1% from last year, 26.4 percentage points more than the growth rate of last year.

 

The outstanding bullish performance in the securities markets has drawn many people to take their money out of banks and put it in the stock markets. Although the central bank raised the interest rate last month, both the fixed and current deposits declined in the first quarter, with Renminbi savings dropping by 3.685 billion yuan.

 

Statistics from the central bank show that as Renminbi appreciation quickens, companies and residents in Shanghai are unwilling to keep foreign currencies. In March, the foreign currency deposits declined sharply by 886 million US dollars in a single month.

 

At the same time, the amount of newly released loans in Renminbi and foreign currencies both hit a historical high point. During the first quarter, the amount of new loans equalled to nearly half of the total new loans issued last year.