Solid monetary readings signal steady policy support

China's aggregate social financing and broad money supply growth remained solid in July, official data showed on Wednesday, underscoring the continuation of an accommodative monetary policy that is providing a suitable financial environment for the real economy.

The country's aggregate social financing — the total amount of financing to the real economy — stood at 23.99 trillion yuan ($3.34 trillion) in the first seven months of the year, up by 5.12 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 431.26 trillion yuan as of the end of July, marking a 9 percent year-on-year increase, compared with 8.9 percent as of the end of June.

The broad money supply, or M2, reached 329.94 trillion yuan at the end of last month, up 8.8 percent year-on-year, compared to 8.3 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 5.6 percent year-on-year, up from 4.6 percent as of the end of June, which experts said pointed to rising spending appetites among market players.

China's new yuan-denominated loans totaled 12.87 trillion yuan in the first seven months of the year, compared with 12.92 trillion yuan in the first half, the PBOC added, with experts attributing the July decline to seasonal factors.