The People’s Bank of China just published the latest monetary statistics for May 2012, with monetary supply growing faster than expected while the new loans number came in in-line with the whisper number but ahead of consensus estimate.
M2 money supply growth was 13.2% yoy in May, up from 12.8% yoy in April and above market estimate of 12.9%. M1 money supply increased by 3.5% yoy, up from 3.1% yoy in the previous month.
Net new loans came in at RMB793.2 billion, well ahead of market expectation of RMB700 billion, but more or less in-line with what informed sources said before (i.e. RMB800 billion) after the rush to lend in the final week of May (or as we speculated, banks being forced by the government to lend for the “stimulus”). And as the sources said, there is a slight pick-up in medium & long-term loans, although the amount remains to be low relative to the period when the economy was on steroid (i.e. during the previous round of stimulus).
Source: People’s Bank of China
The biggest surprise, however, came from the deposit side, with Chinese Yuan deposit going up by RMB 1.22 trillion despite various sources saying that deposits are falling throughout the month.
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