MNI BRIEF: China May New Loans, Aggregate Finance Rise Further

China's total social financing rose by CNY2.29 trillion in May, nearly doubling April's CNY1.16 trillion, mainly driven by the accelerated issuance of government bonds and increased corporate bond financing amid low interest rate environment, data released on Friday by the People's Bank of China showed.

Banks extended CNY620 billion in new loans in May, rising from April's CNY280 billion.

M2 money supply grew by 7.9% y/y in May, missing market forecasts of an 8.1% growth and decelerating from 8.0% in April. M1 grew by 2.3% y/y, rising from April's 1.5% growth to hit the highest level since January 2023. M0 rose by 12.1% y/y, edging up from the previous 12.0% and recording a four-month high. 

Shadow banking transactions decreased by CNY115.6 billion, compared to a CNY287.3 billion contraction in the previous month. (See MNI: Tariffs, Weak Demand To Drive Moderate PBOC Easing In H2)