MNI DATA IMPACT: China End-Jan M2 Near One-Year Low At 9.4%

China's M2 money supply rose 9.4% y/y in January, the slowest rate of growth since February 2020 and decelerating from the 10.1% rise seen in December, data released by the People's Bank of China on Tuesday showed. Analysts had been forecasting a repeat of the 10.1% gain

Among the key metrics, M1 growth picked up 14.7% y/y from the previous 8.6% gain, reflecting robust cash flow. M0 fell 3.9% y/y, reversing Dec's 9.2% gain.

Aggregate financing rose sharply to CNY5.17 trillion from Dec's CNY1.72 trillion, outpacing the median forecast of CNY4.7 trillion. On an annual basis, it decelerated to 13% y/y from 13.3% at end-Dec.

LENDING

New loans rose to CNY3.58 trillion, almost tripling from December's CNY1.26 trillion, basically in line with the forecast CNY3.5 trillion.

Shadow banking transactions expanded by CNY415.1 billion in Jan. Among which, entrusted loans and undiscounted bankers' acceptances grow CNY9.1 billion and CNY490.2 billion, respectively. While trust loans fell CNY84.2 billion.