MNI BRIEF: China Jun Loans, Aggregate Finance Hit 3-Month High

China's total social financing rose by CNY4.2 trillion in June to hit a three-month high, nearly doubling May's CNY2.29 trillion, mainly driven by accelerated government bond sales, data released on Monday by the People's Bank of China showed.

Banks extended CNY2.24 trillion in new loans in June, rising from May's CNY620 billion, also hitting a three-month high. M2 money supply grew by 8.3% y/y to hit the highest since April 2024, beating market forecasts of an 8.2% growth and accelerating from 7.9% in May. M1 grew by 4.6% y/y, rising from May's 2.3% growth to hit the highest level since January 2023. M0 rose by 12.0% y/y, edging down from the previous 12.1%.

Shadow banking transactions decreased by CNY148.4 billion, compared to a CNY115.6 billion contraction in the previous month. (See MNI: PBOC Seen Guiding Slow Yuan Strength Amid Trade Talks)