Chinese M2 grew more quickly than expected in July.
China's M2 money supply growth quickened to 12% y/y in July from 11.4% in June, outpacing the 11.4% forecast by market analysts. It was the fastest growth since April 2016, data from the People's Bank of China on Friday showed. Among other key metrics, M1 growth rose to 6.7%, accelerating from the previous 5.8%.
New loans slowed more than expected to CNY679 billion to hit a three-month low, down from June's CNY2.81 trillion. Aggregate financing slid to CNY756.1 billion from the previous CNY5.17 trillion, well below the expected level CNY1.5 trillion and the lowest since July 2016. On an annual basis, outstanding total social finance grew by 10.7%, compared with 10.8% last month.
Shadow banking transactions fell by CNY305.3 billion, compared to the contraction of CNY14.2 billion in June.