Chia July M2 money supply +10.7% vs +11.0% y/y expected

• Prior +11.3%
• New yuan loans ¥345.9 billion vs ¥800.0 billion expected
• Prior ¥3.05 trillion

The slowdown in broad money growth in China continues with new yuan loans also dipping after the huge surge at the end of Q2. Beijing has a tough task in trying to balance out tighter credit conditions, providing more stimulus while at the same time fending off financial risks i.e. deleveraging efforts.