China's May M2 Growth Likely To Slow

China’s financial data including M2 money supply growth this month may largely decelerate as some resident and corporate deposits are converted into investment on long-term treasury bonds, with market liquidity converged, Securities Times reported. While the central bank controlling the gate of general money supply, the flow of deposits and loans depends on the needs of different types of borrowers, requiring fiscal and other policies to exert synergistic force, the Times said citing unnamed analysts. The newspaper noted that M2 growth will slow down in future with the development of direct financing, which does not represent weakened financial support but a reflection of improved financing structure to meet the needs of the real economy better.