China’s new loans dived in April due to shrinking short-term demand from household and enterprises, People's Bank of China data showed on Thursday.

New loans grew CNY718.8 billion, dramatically down from the last CNY3.89 trillion increase and missing expectations of CNY1.4 trillion. Short-term loans slid CNY235.4 billion while medium and long term loans grewCNY551.3 billion. (See MNI: China Faces H2 Headwinds As Consumption Weakens)

Total social financing grew by CNY1.22 trillion in April, shrinking from the previous CNY5.38 trillion and lower than market consensus of CNY2.0 trillion. The outstanding TSF rose by 10.0% in April, the same growth as registered in March.

Governments raised a net CNY454.8 billion via bond issuance in April compared with CNY602.2 billion in March. Shadow banking transactions decreased by CNY114.5 billion compared to an increase of CNY191.9 billion the previous month.

M2 money supply grew by 12.4%y/y, down from 12.7% in March. M1 increased 5.3% y/y, accelerating from March's 5.1%%.