China's M2 growth continued to slow in the last month, but new loans and other financing data were steady, central bank data showed Tuesday.
M2, a broad measure of money supply that covers cash in circulation and all deposits, expanded 9.2 percent from a year earlier as of the end of July, the People's Bank of China (PBOC) said in a statement.
Decelerating for a sixth straight month, the M2's growth rate in July marked a new low.
While lower M2 growth stoked concerns about the economy, the PBOC has downplayed the influence, saying there is no need for excessive interpretation as long as the real economy receives adequate financial support.
Despite lackluster M2, other financing data remained robust.
The newly added total social financing (TSF) came in at 1.22 trillion yuan (more than 180 billion U.S. dollars) in July, up 741.5 billion yuan from a year ago.
"The TSF has become a more accurate and inclusive gauge than M2 for the current Chinese economy as it covers a wider range of financing channels," said Sheng Songcheng, a central bank advisor.
Outstanding new yuan-denominated loans stood at 825.5 billion yuan in July, up 361.9 billion yuan from the same period a year ago and beating market expectations.
M1, a narrow measure of money supply that covers cash in circulation plus demand deposits, rose 15.3 percent, accelerating from a 15-percent increase in June. M0, the amount of cash in circulation, was up 6.1 percent.
The PBOC said mild M2 growth is likely to become the "new normal" along with the country's deleveraging and stronger financial support for the real economy.
In a research note, China International Capital Corporation, a Beijing-based investment bank, predicted M2 growth will stabilize within a range of 9 to 10 percent in the future.
"Financial data remained in a reasonable range and there will be no marked adjustments in the monetary policy," the note said.
