China: M2 and credit growth slow in April after March’s surge
In April, Chinese banks distributed CNY 1.02 trillion (USD 150 billion) in new yuan loans. The reading was below both the CNY 1.69 trillion distributed in March and market expectations of CNY 1.20 trillion. In the 12 months up to April, new yuan loans totaled CNY 16.9 trillion (12 months up to March: CNY 17.1 trillion).
Meanwhile, annual growth in M2—the broadest measure of money supply in China—inched down from March’s 8.6% to 8.5% in April. The reading was in line with market expectations.
Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—fell from CNY 2.86 trillion in March to CNY 1.36 trillion in April.