Money Supply
May Data Is Market Neutral
China’s May 21 money supply and new loans were slightly above expectations, M1 and M2 grew 6.1% yoy and 8.3% yoy, while new loans were Rmb1.5t. However we expect the data to be market neutral as long as market expectations of new loans this year being capped at Rmb19.6t remain unchanged. The latter points to loans growth of 11.4% yoy by year-end compared with 12.2% yoy in 5M21.