MNI BRIEF: China July New Loans Fall First Time In Two Decades

China's new yuan loans fell by CNY50 billion in July, the first fall in the month since 2005 and reversing June's CNY2.24 trillion growth, data released on Wednesday by the People's Bank of China showed.

Total social financing rose by CNY1.16 trillion in July, decelerating from June's CNY4.2 trillion and hitting a three-month low.

M2 money supply grew by 8.8% y/y, the highest since December 2023 and beating market forecasts of 8.3% growth. It accelerating from 8.3% in June. M1 grew by 5.6% y/y, rising from June's 4.6% growth to the highest since January 2023. M0 rose by 11.8% y/y, edging down from the previous 12.0%.

Shadow banking transactions decreased by CNY166.6 billion, compared to a CNY148.4 billion contraction in the previous month. (See MNI: China's Interest Bond Tax To Inject Yield Volatility)