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China May M2 money supply +7.0% vs +7.2% y/y expected

Prior +7.2%New yuan loans ¥950.0 bnPrior ¥730.0 bn

New bank loans continue to show further signs of moderation, with the above figure missing on estimates of around ¥1.2 trillion. The January to May total stands at ¥11.14 trillion – which is still on the high side. But that owes much to the surge in January, with Beijing stepping up support for the economy. Meanwhile, the M2 growth is the slowest on record and that’s a little concerning as local authorities look to strike the right balance between more accommodative policy and credit risks.

This article was written by Justin Low at www.forexlive.com.

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