China: M2 growth stabilizes in May
Annual growth in M2—the broadest measure of money supply in China—was stable at April’s three-year high of 11.1% in May. The print undershot the 11.3% increase that market analysts had expected.
In May, Chinese banks distributed CNY 1.48 trillion (USD 209 billion) in new yuan loans. The reading came in below the CNY 1.70 trillion recorded in April but was in line with the CNY 1.50 trillion that market analysts had expected. In the 12 months up to May, new yuan loans totaled CNY 19.1 trillion (12 months to April: CNY 18.8 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 CNY 3.09 trillion in April to CNY 3.19 trillion in May. Market analysts had expected a decrease in TSF to CNY 3.00 trillion.