MNI BRIEF: China December M2 Rises To 4-Month High

China's M2 money supply grew by 8.5% y/y in December, marking the highest reading since August, beating both forecasts of 8.0% growth and November's 8.0% gain, data released on Thursday by the People's Bank of China showed. 

New yuan loans increased for the second month by CNY910 billion in December, rising from the previous CNY390 billion. Total social financing rose by CNY2.21 trillion, edging down from CNY2.49 trillion in November. While M1 rose by 3.8% y/y, decelerating from November's 4.9% growth. M0 grew by 10.2% y/y, down from the previous 10.6% reading. 

Shadow banking transactions decreased by CNY50.6 billion, compared to a CNY214.5 billion expansion in the previous month.