MNI BRIEF: China May M2 Slows To Record Low Again
China's M2 money supply slowed more than expected to 7% y/y, hitting a new low for the data first recorded in 2009 for the second month, data released by the People's Bank of China showed Friday.
M2 was lower than the 7.1% estimate, and the previous 7.2% . M1 dropped by 4.2% y/y, after April's 1.4% decline. (See MNI: Chances Rise PBOC Cuts RRR As Gov Debt Issuance Increases)
Banks extended CNY950 billion in new yuan loans in May, acelerating from April's CNY730 billion. Total social financing rose by CNY2.07 trillion in May, reversing the CNY200 billion contraction in April. Outstanding TSF rose by 8.4% by the end of May, compared with the previous 8.3%.
Shadow banking transactions decreased by CNY111.7 billion, compared to a CNY425.4 billion contraction the previous month.