MNI DATA IMPACT: China August M2 At 5-Month Low; New Loans Up

China's M2 money supply rose 10.4% y/y in August, slowing from the 10.7% y/y growth seen in July. It was the lowest growth recorded since April, indicating the People's Bank of China has scaled-back easing measures introduced to support the pandemic-hit economy, data released by the central bank Friday showed.

Other key points to note:

New loans bounced back to CNY1.28 trillion, as the demand for loans grew along with the reopening of the economy.

Aggregate financing to the economy boomed to CNY3.58 trillion, more than double July's CNY1.69 trillion.

Shadow banking transactions reduced by CNY71.0 billion, narrowing from CNY264.9 billion contraction in July. Entrusted loans, trust loans declined by CNY41.5 billion and CNY31.6 billion respectively, while undiscounted bankers' acceptances rose CNY144.1 billion from July.