MNI DATA IMPACT: China June Money Supply in Line with Forecast

     BEIJING (MNI) - China's M2 expanded 8.5% y/y in June, unchanged for the

third month, slightly less than 8.6% projection of an MNI survey. Bank loans and

total social financing data are in line with market expectations, data by the

central bank on Friday showed.

     --New loans totalled CNY1.66 trillion, up from CNY1.18 trillion in May and

compares with CNY1.65 trillion projected by an MNI survey. The gain was the

third-highest this year following a record CNY3.23 trillion in January and

CNY1.69 trillion in March.

     --Aggregate financing to the economy rose CNY2.26 trillion from May's

CNY1.4 trillion, compared with the CNY2 trillion projection. It was also the

third-fastest increase this year, following January's record CNY4.64 trillion

and March's CNY2.86 trillion. 

     --Shadow banking finance shrank CNY90.1 billion, compared to the CNY145.3

billion reduction in May. Within this category, entrust loans and undiscounted

bankers' acceptances together declined CNY91.6 billion, while trusted loans

increased CNY1.5 billion. 

     --Corporate bond issuance accelerated to CNY147.9 billion from CNY47.6

billion in May.

--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

[TOPICS: MAQDS$,MAUDR$,MAUDS$,M$A$$$,M$Q$$$,M$U$$$]