China July M2 money supply +8.1% vs +8.4% y/y expected
Latest Chinese credit data for July has been released - 12 August 2019
- Prior +8.5%
- New yuan loans ¥1,060.0 bn vs ¥1,275.0 bn expected
- Aggregate financing ¥1,010.0 bn vs ¥1,625.0 bn expected
Money supply growth was slightly weaker-than-expected though it remains within the average range seen over the past year.
It just goes to show that China is still working out efforts to balance deleveraging measures and allowing for looser credit conditions to bolster its economy.
But the recent tightening in liquidity (as seen via the loan amounts above) may not be encouraging for economic growth if it keeps up over the next few months.