China Money June 2017


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.

The government set an M2 growth target of 12.0% for this year. FocusEconomics Consensus Forecast participants expect M2 to expand 10.8% in 2017, which is down 0.1 percentage points from the previous month’s forecast. In 2018, the panel sees M2 growth of 10.4%.

Author: Ricard Torné, Lead Economist

Sample Report

Looking for forecasts related to Money in China? Download a sample report now.


China Money Chart

China Money June 2017

Note: New yuan loans in CNY billion and year-on-year variation of M2.
Source: People’s Bank of China (PBOC) and FocusEconomics calculations.

China Economic News

More news

Search form