MNI BRIEF: China New Yuan Loans Reverse August Decline

China's new yuan loans rose by CNY590 billion in August, reversing some of July's CNY50 billion fall, data released on Friday by the People's Bank of China showed.

Total social financing rose by CNY2.57 trillion in August, accelerating from July's CNY1.16 trillion. M2 money supply grew by 8.8% y/y, beating market forecasts of 8.6% growth and remaining the same as July's 8.8% growth, while M1 rose by 6% y/y, rising from July's 5.6% growth to the highest since January 2023. M0 rose by 11.7% y/y, edging down from the previous 11.8%.

Shadow banking transactions increased by CNY215.7 billion, compared to a CNY166.6 billion contraction in the previous month. (See MNI: PBOC To Continue Gold Buying As Dollar Hedge)