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MNI BRIEF: China Sep Aggregate Finance Jumps, M2 Slows Further

MNI (Singapore)
(MNI)Beijing

China’s aggregate finance jumped to a three-month high in September as new loans and government bonds sales rose, with M2 continuing to decelerate, the People's Bank of China data showed Friday.

New loans grew by CNY2.31 trillion from CNY1.36 trillion, though underperforming the CNY2.5 trillion expectation. Total social financing soared by CNY4.12 trillion, compared with CNY3.12 trillion in August, beating the market consensus of CNY3.75 trillion. The outstanding TSF rose by 9% in September, flat from the August reading.

M2 money supply slowed for the seventh consecutive month to 10.3% y/y, the lowest level since March 2022 (9.7%), compared to August's 10.6% and the 10.6% estimate. M1 increased 2.1% y/y, decelerating from August's 2.2%. Shadow banking transactions increased by CNY300.9 billion compared to a CNY100.5 billion expansion in the previous month.

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