China sees strong financing momentum in May

China's financing activity maintained steady momentum in May, signaling improved market confidence, official data showed on Friday.

The country's aggregate social financing — the total amount of financing to the real economy — stood at 18.63 trillion yuan ($2.59 trillion) in the first five months of the year, up by 3.83 trillion yuan from the same period last year, said the People's Bank of China, the country's central bank.

The PBOC said that the country's outstanding aggregate social financing totaled 426.16 trillion yuan as of the end of May, marking an 8.7 percent year-on-year increase, the same growth rate as the end of April.

The broad money supply, or M2, reached 325.78 trillion yuan at the end of last month, up 7.9 percent year-on-year, compared to 8 percent seen a month earlier, the central bank said.

Meanwhile, the country's M1 money supply — which represents how much money is actively being used in the economy — grew by 2.3 percent year-on-year, up from 1.5 percent as of the end of April, which experts said pointed to rising spending appetites among market players.

The country's new yuan-denominated loans came in at 10.68 trillion yuan in the first five months of the year, the PBOC added.