China's April M2 money supply rises at fastest pace since November 2020.
China's M2 money supply growth quickened to 10.5% y/y in April from 9.7% in March, outpacing the 9.9% forecast by market analysts and hitting the fastest rate since November 2020, the People's Bank of China data released Friday showed. Among other key metrics, M1 growth rose by 5.1%, also accelerating from the previous 4.7%.
However, new loans unexpectedly slumped to a more than 4-year low of CNY645.4 billion from March's CNY3.13 trillion as financing demand dropped sharply, with firms facing operational difficulties amid Covid outbreaks and rising production costs, the PBOC said in a statement.
Aggregate financing, much lower than the expected level of CNY2.2 trillion, dropped to CNY910.2 billion from the previous CNY4.65 trillion, hitting the lowest since February 2020. On an annual basis, outstanding total social finance grew by 10.2%, compared with 10.6% last month. Shadow banking transactions fell by CNY317.4 billion, compared to an expansion of CNY13.5 billion in March.