REPEAT: MNI 5 THINGS: China February Money Supply Plunges

Repeats Story Initially Transmitted at 09:15 GMT Mar 10/05:15 EST Mar 10

     BEIJING (MNI) - Aggregate financing to the economy in February fell to

30-month low, according to data by the People's Bank of China (PBOC) released on

Sunday. At a press conference in Beijing, governor Yi Gang said a more accurate

reading needs to combine data for the fist three months to round out swings

caused by seasonal factors and traditional holidays on the lunar calendar. 

     Here are the key points from the data released:

     - Aggregate financing to the economy (total social financing) rose CNY703.0

billion, the smallest increase since Aug 2016, down from a record high CNY4.64

trillion in January. It was below the median of an MNI survey calling for CNY1.3

trillion. Bills and bond issuances both slowed.

     - Shadow banking fell CNY364.8 billion, reversing a gain of CNY343.2

billion in January. Undiscounted bankers' acceptance fell CNY310.3 billion after

surging CNY378.6 billion in January. 

     - Corporate bond issuance slowed to CNY80.5 billion from CNY499.0 billion

in January, indicating markets' risk aversion in time of economic uncertainties.

     - New loans totaled CNY885.8 billion, plunging from a record CNY3.23

trillion in January and less than CNY1.0 trillion projected by an MNI survey. 

     - M2 expanded at 8.0% y/y, a level many economists regard as the minimum to

sustain China's economy. It was below 8.4% forecast, which was also the rate of

increase in January. 

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

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