MNI DATA IMPACT: China May M2 Money Supply Steady At 8.5%

     BEIJING (MNI) - China's M2 expanded 8.5% y/y in May, in line with the April

reading and matching the MNI survey median forecast. The bank loans and total

social financing data released by the People's Bank of China on Wednesday also

came in close to market expectations.

     --New loans totalled CNY1.18 trillion, edging up from CNY1.02 trillion in

April, but a shade less than CNY1.2 trillion projected by MNI. 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 CNY1.4 trillion from April's

CNY1.36 trillion, outpacing the CNY1.33 trillion projected in an MNI survey. It

was also the third-fastest growth this year, following January's record CNY4.64

trillion and March's CNY2.86 trillion. 

     --Shadow banking finance contracted CNY145.3 billion in May, close to the

CNY142.7 billion contraction in April. Within this category, entrusted loans,

trust loans and undiscounted bankers' acceptances declined CNY63.1 billion,

CNY5.2 billion and CNY77 billion, respectively.

     --Corporate bond issuance decelerated to CNY47.6 billion from CNY357.4

billion in April.

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

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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