MNI DATA IMPACT: China M2 Money Supply Rises to 13-Month High

     BEIJING (MNI) - China's money supply last month rose by the quickest pace

in more than a year, suggesting the People's Bank of China (PBOC), the central

bank, may hold off drastic easing measures, such as cutting required reserve

ratios for banks. Here are the key takeaways from the data released on Friday:

     --M2 expanded 8.6% y/y, faster than 8.0% in February and beat 8.2% forecast

by an MNI survey.

     --New loans totaled CNY1.69 trillion, more than CNY1.265 trillion projected

by MNI. The gain was the second-highest this year following a record CNY3.23

trillion in January.

     --Aggregate financing to the economy (total social financing) rose CNY2.86

trillion, more than four times February's CNY703.0 billion. It was also the

second-fastest growth this year, following January's record CNY4.64 trillion.

The MNI survey had projected CNY1.9 trillion.

     --Shadow banking finance reversed a contraction in February and rose by

CNY82.39 billion. Within this category, entrusted loans decreased CNY107.03

billion, while trust loans and undiscounted bankers' acceptances together gained

CNY189.43 billion.

     --Corporate bond issuance accelerated to CNY327.60 billion from CNY80.48

billion in February, underlying the central bank's effort to promote bond

issuances.

--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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