MNI BRIEF: China Jan M2 Rises To Over Two-year High

China's M2 money supply grew by 9.0% y/y in January, he highest growth rate since December 2023, beating both forecasts of 8.3% growth and December's 8.5% gain, data released on Friday by the People's Bank of China showed. 

New yuan loans increased for the third month running, up by CNY4.71 trillion in January, surging from the previous CNY910 billion and hitting a one-year high. Total social financing rose by CNY7.22 trillion, up from CNY2.21 trillion in December, setting a new high. While M1 rose by 4.9% y/y, accelerating from December's 3.8% growth. M0 grew by 2.7% y/y, down from the previous 10.2% reading. 

Shadow banking transactions increased by CNY609.7 billion, compared to a CNY50.6 billion contraction in the previous month.