MNI BRIEF: China March M2 Slows More Than Expected
China's M2 money supply measure slowed more than expected to near a three-year low, while bank lending and aggregate finance bounced back due to seasonal effects, data released by the People's Bank of China showed Friday.
Banks extended CNY3.09 trillion in new yuan loans in March, rising from February's CNY1.45 trillion. Total social financing rose by CNY4.87 trillion, up from the previous CNY1.56 trillion. Outstanding TSF rose by 8.7% by the end of March, compared with the previous 9%. (See MNI INTERVIEW: PBOC To Cut Rates To Boost Credit - Zhang Bin)
M2 money supply growth slowed to 8.3% y/y from February's 8.7%, missing the 8.8% estimate and hitting the lowest level since September 2021 (8.3%). M1 increased by 11% y/y, decelerating from February's 12.5% reading. Shadow banking transactions increased by CNY376.7 billion, compared to a CNY328.7 billion contraction the previous month.