MNI DATA IMPACT: China Feb Total Financing Slumps; M2 Quickens

     BEIJING (MNI) - China's February aggregate financing to the economy plunged

to less than a fifth of January's level as the coronavirus outbreak halted much

of the business activities. At CNY855.4 billion, it was the lowest in almost

four years and less than CNY1.59 trillion expected by the market, data released

Wednesday by the People's Bank of China (PBOC) showed. 

     Here are some major points: 

     - M2 money supply rose 8.8% y/y, accelerating from 8.4% rise in January to

a two-year high. This outshone the 8.5% forecast by most economists. It resulted

from PBOC's large liquidity injections via reverse repos and cuts to policy

rates responding to the outbreak.

     - New loans totalled CNY905.7 billion, less than a third of January's

CNY3.34 trillion, also missing projected CNY1.12 trillion.

     - Shadow banking transactions contracted by CNY485.7 billion, compared to

January's expansion of CNY180.9 billion. Entrusted loans, trust loans and

undiscounted bankers' acceptances declined by CNY35.6 billion, CNY54 billion and

CNY396.1 billion, respectively.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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