Strong Monetary Expansion in China Continues In December

January 11th, 2011 by Belisarius

(For December 2010)

The most broad measure of money supply – M2 rose 19.7% YoY in December vs. 19.0% consensus and 19.5% rise in November.

Chart 1. China Monetary Aggregates

Chinese banks issued CNY 480.8 billion of new loans in December vs. CNY 564.0 billion in November and consensus of CNY 360.0 billion. Total new loans for 2010 reached CNY 7.9 trillion vs. CNY 7.5 trillion annual target.

Chart 2. China New Loans

New loan issuance slowed down in December because banks tried to obey annual targets; Monetary expansion continues.

 

 

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