MNI BRIEF: China Jan Yuan Loans, Financing Beat Expectations
MNI (BEIJING) - China's new yuan loans and aggregate finance both beat market expectations in January amid the traditional boom season, while M1 turned positive partly due to the revised statistical methods, data released Friday by the People's Bank of China showed.
M1 money supply grew by 0.4% y/y, reversing December's 1.4% fall and turning positive for the first time after falling for nine straight months. The PBOC has broadened M1's statistical scope to further include personal demand deposits and customers’ provisions of non-bank payment institutions, starting Jan 2025.
Banks extended CNY5.13 trillion in new loans in January, up from December's CNY990 billion and outperforming the CNY4.53 trillion forecast. Total social financing rose by CNY7.06 trillion, higher than growth of CNY2.86 trillion in December and the CNY6.50 trillion expectation. (See MNI: China To Ensure 5% GDP Amid Export Uncertainty: CASS's Yu)