MNI DATA IMPACT:China End-Dec M2 10.1%; New Loans CNY1.26 trln

China's M2 money supply increased 10.1% y/y in December, slowing for a second straight month after the 10.7% y/y gain seen in November. The growth is shy of the consensus expectation for a 10.7% y/y increase, data released by the People's Bank of China late Tuesday showed.

Among the key metrics, M1 declined to 8.6% y/y from the previous 10.0% y/y gain, and M0 grew 9.2% y/y, slower than 10.3% y/y in November. The central bank has injected CNY712.5 billion cash in the year 2020, PBOC said in the release.

Aggregate financing increased CNY1.72 trillion, compared with November's CNY2.13 trillion. The central bank lent CNY20.03 trillion to the real economy in 2020.

LENDING

New loans totaled CNY1.26 trillion, shrank from the previous CNY1.43 trillion, basically in line with the forecast CNY1.24 trillion. New loans have grown CNY19.6 trillion in the year 2020, MNI calculated. Shadow banking transactions shrank by CNY737.5 billion, compared with the CNY204.4 billion reduction in November. This is mainly driven by the contraction of entrusted loans, trust loans and undiscounted bankers' acceptances, which fell CNY55.9 billion, CNY460.1 billion and CNY221.5 billion, respectively.