MNI BRIEF: China Nov M1 Decline Narrows, M2 Slows
China's M1 money supply drop further narrowed amid a rebound in housing mortgages as measures to stabilise the real estate sector continued to kick in, data released Friday by the People's Bank of China showed.
M1 continued to contract, falling for an eighth straight month in November, though with the decline narrowing to -3.7% from the previous -6.1%. Growth in M2 was 7.1% y/y, down from October's 7.5% growth and underperforming the 7.5% forecast.
Banks extended CNY580 billion in new loans in November, up from October's CNY500 billion. Total social financing rose by CNY2.34 trillion, higher than growth of CNY1.40 trillion in October. Shadow banking transactions increased by CNY81.8 billion, compared to a CNY144.5 billion contraction the previous month.