MNI DATA BRIEF: China End-Apr M2 Near 2-Y Low; New Loan Halves

China's M2 money supply growth slowed to 8.1% y/y in April, down from 9.4% y/y in the previous month, hitting the lowest level since July 2019. The outcome fell short of analyst expectations for a 9.2% gain, according to data released by the People's Bank of China Wednesday.

Among the key metrics, M1 growth slowed to 6.2% y/y from a previous 7.1% gain, while M0 rose 5.3% y/y, quickening from the 4.2% gain in March. Aggregate financing fell sharply to CNY1.85 trillion from CNY3.34 trillion, also underperforming the median forecast of CNY2.27 trillion. On an annual basis, it slowed to 11.7% from 12.3% at the end of March.

LENDING

New loans rose to CNY1.47 trillion, almost half March's CNY2.73 trillion and also lower than the forecast CNY1.6 trillion.

Shadow banking transactions reduced by CNY369.3 billion, compared to the reduction of CNY412.9 billion in March. Among which, entrusted loans, trust loans, undiscounted bankers' acceptances fell CNY21.3 billion, CNY132.8 billion and CNY215.2 billion, respectively.