**MNI: 5 Things We Learned From China January Financial Data

     **BEIJING (MNI) - Here are the key points from data of China money supplies

and credit growth for January, released by the People's Bank of China on Monday:

     - New yuan-denominated loans increased CNY2.9 trillion in January, the

highest in history, beating the median of MNI survey forecast of CNY2 trillion.

It is also much higher than CNY2.03 trillion recorded in January last year.

Strong loan growth reflects strong financial demands at the beginning of the

year, and the impact of converting banks' non-standard assets into loans to meet

regulators' requirements.

- Total social financing grew CNY3.06 trillion in January, in line with the

median of MNI survey of CNY3.0 trillion, but lower than the CNY3.70 trillion

growth in the same period last year, showing the impact of the financial

deleveraging campaign. 

     - M2 grew 8.6% y/y in January, lower than the 11.3% growth in January last

year, but picking up from 8.2% growth in December and ahead of the median of MNI

survey of 8.2%.  

     - M0 money supply decreased 13.8% y/y in January, compared with the growth

of 19.4% same period last year. This is largely due to the Spring Festival

Holiday effect, which will likely have seen people hold more cash in January

last year than this year. 

     - Trust loans increased CNY45.5 billion in January, much lower than

CNY317.5 billion growth last January, reflecting stricter regulation on trust

loans, possibly impacting on the financing abilities of the property sector. 

--MNI Beijing Bureau; +86 10 85325998; email: he.wei@marketnews.com

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

[TOPICS: MAQDS$,MAUDR$,MAUDS$,M$A$$$,M$Q$$$,M$U$$$]