MNI DATA IMPACT: China End-March M2 Slows; New Loans Double

China's M2 money supply rose 9.4% y/y, decelerating from 10.1% in February, data released by the People's Bank of China on Monday showed, falling short of analyst expectations for a 9.6% gain.

Among the key metrics, M1 growth slowed to 7.1% y/y from the previous 7.4% gain, while M0 rose 4.2% y/y, flat from that in February.

Aggregate financing rose sharply to CNY3.34 trillion from February's CNY1.71 trillion, although underperforming the median forecast of CNY3.75 trillion. On an annual basis, it decelerated to 12.3% from 13.3% at the end of February.

LENDING

New loans rose to CNY2.73 trillion, more than doubled from February's CNY1.36 trillion and beating the forecast CNY2.3 trillion.

Shadow banking transactions reduced by CNY412.9 billion, compared to the reduction of CNY39.6 billion in February. Among which, entrusted loans, trust loans, undiscounted bankers' acceptances fell CNY4.1 billion, CNY179.1 billion and CNY229.7 billion, respectively.