China’s M2 Money Supply and Renminbi Lending Growth Decelerate since Start of 2022

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The latest official data from the People’s Bank of China (PBOC) indicates that growth in the Chinese M2 money supply as well as renminbi lending has eased since the start of 2022.

The M2 money supply balance stood at 244.15 trillion yuan at the end of February, for a year-on-year (YoY) rise of 9.2%. This growth rate marked a deceleration of 0.6 percentage points compared to the end of January, as well as a deceleration of 0.9 percentage points compared to the same period last year.

The M1 balance stood at 62.16 trillion yuan at the end of February, for a YoY rise of 4.7%, and an acceleration of 6.6 percentage points compared to the end of the previous month, as well as a deceleration of 2.7 percentage points compared to the same period last year.

The renminbi loan balance stood at 197.89 trillion yuan at the end of February, for YoY growth of 11.4%, and decelerations of 0.1 and 1.5 percentage points compared to the end of the previous month and the same period last year respectively.

Renminbi lending increased by 1.23 trillion yuan in February, an amount 125.8 billion yuan smaller than the reading for the same period last year.