China Center Chart of the Week: Recent jump in bank deposits likely boosted by new WMP regulations

This China Center members-only chart shows changes in the stock of outstanding deposits in China’s banking system on a monthly basis, and total outstanding deposit growth. The China Center has previously highlighted the volatility in the bank deposit base that began in January 2011. Much of this volatility is due to the movement of funds off-balance-sheet into wealth management products (WMPs) and back on-balance-sheet in order for banks to bypass regulatory hurdles at quarter-end checkpoints.

Please download this Chart of the Week for the full analysis and explanation.