MNI 5 Things: China June New Loans Blowout; M2 At Record Low

     BEIJING (MNI) - The following lists the key points from China June money

supply and credit growth data, released by the People's Bank of China Friday:

     - New loans increased by CNY1.84 trillion in June from May, higher than the

median CNY1.60 trillion forecast in the MNI analyst survey. It is the second

highest monthly growth in the first six months, indicating financing demand via

the loan channel remains strong.

- Total social financing (TSF) grew by CNY1.18 trillion in June over May,

rebounding from last month's 22-month low. The reading came in lower than MNI's

survey median, which projected CNY1.50 trillion. TSF in the first half amounted

to CNY9.1 trillion.

     - Shadow banking continues to shrink under new regulations. Trust loans,

entrusted loans and undiscounted bankers' acceptances, together decreased

CNY1.26 trillion in June, compared with a decrease of CNY264.8 billion in May. 

     - M2 grew a record slow rate of 8.0% y/y in June, reflecting a more

standard use of bank capitals under deleveraging and strict supervision

background.

     - M1 growth also picked up from the previous 6.0% to 6.6% in June, in line

with the TSF growth which underlines the difficulties for corporates getting

increased funding.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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