China: M2 growth falls to an all-time low in June
July 12, 2017
Chinese banks extended CNY 1.54 trillion (USD 227 billion) in new yuan loans in June, above May’s CNY 1.11 trillion. The print overshot the CNY 1.20 trillion the markets had expected. In the 12 months up to June, new yuan loans totaled CNY 13.1 trillion (May: CNY 12.9 trillion).
Total social financing (TSF)—a broader measure of credit and liquidity in the economy that includes loans, bonds and other non-traditional instruments—rose from May’s CNY 1.06 trillion to CNY 1.78 trillion in June.
Meanwhile, annual growth in M2—the broadest measure of money supply in China—declined from 9.6% in May to 9.4% in June. The reading fell short of the 9.5% that market analysts had expected and represented the lowest rate since the current series began in 1996 in May.