Chinese money and loan growth slows in July

BEIJING, Aug 11 - Annual growth in China's broad M2 measure of money supply slowed to 28.4 percent in July from 28.5 percent in June, the People's Bank of China said on Tuesday.

Yuan loans outstanding in July were 33.9 percent higher than a year earlier, down from June's record reading of 34.4 percent.

Banks extended 355.9 billion yuan in new local-currency loans in July, down from 1.53 trillion yuan in June.

Growth in M1 money supply quickened to 26.4 percent in July from 24.8 percent in June. Growth in the narrower aggregate, an indicator that firms and consumers are keeping funds liquid in order to invest or spend, has been rising sharply since February.

The median forecast of economists was for a 34.3 percent increase in the stock of loans and a 28.8 percent rise in M2. [ID:nPEK276139]

Money supply (percent change on a year earlier):

Jul Jun May Apr Mar Feb Jan Dec Nov Oct M2 28.4 28.5 25.7 26.0 25.5 20.5 18.8 17.8 14.8 15.0 M1 26.4 24.8 18.7 17.5 17.0 10.9 6.7 9.1 6.8 8.9 M0 11.6 11.5 11.2 11.3 10.9 8.3 12.0 12.7 9.0 10.6

Yuan lending in the first seven months totalled 7.73 trillion yuan, far exceeding what the government had said was its minimum target of 5 trillion yuan for all of 2009.

New yuan lending in 2008 was 4.91 trillion yuan, up 35.3 percent from 3.63 trillion yuan in 2007.

Yuan loans (trillions, percent change from a year earlier):

Jul Jun May Apr Mar Feb Jan Dec Nov Oct Lvl 38.1 37.7 36.2 35.6 35.0 33.1 32.0 30.4 29.6 29.8 Chg 33.9 34.4 30.6 29.7 29.8 24.2 21.3 18.8 16.0 14.6