May financial data released: The increase in "liquid money" led to a significant rise in M1 growth rate, and the willingness of enterprises to withdraw funds has notably increased.
At the end of May, the broad money (MMF) balance was 325.78 trillion yuan, an increase of 7.9% year-on-year; at the end of May, the outstanding social financing scale was 426.16 trillion yuan, up 8.7% year-on-year. At the end of May, M1 grew by 2.3% year-on-year, with a significant acceleration in the growth of 'liquid money,' reflecting that recent financial support measures have effectively boosted market confidence, and there are signs of recovery and improvement in economic activities such as investment and consumption.
In the first five months, new social financing reached 18.63 trillion yuan, and new loans amounted to 10.68 trillion yuan, with M2 growing by 7.9% year-on-year at the end of May.
According to central bank data, the increase in social financing from January to May is 18.63 trillion yuan, compared to 16.3429 trillion yuan from January to April; New人民币 loans from January to May amount to 10.68 trillion yuan, estimated at 10.9597 trillion yuan, with January to April at 10.0597 trillion yuan.
Central Bank: By the end of May, the total social financing scale was 426.16 trillion yuan, an increase of 8.7% year-on-year.
On June 13, according to preliminary Statistics from the People's Bank of China, the outstanding social financing scale at the end of May 2025 was 426.16 trillion yuan, an increase of 8.7% year-on-year.
Li Qiang: China is willing to strengthen cooperation with the European Central Bank on the reform of the international MMF system and other areas.
Li Qiang stated that there is great cooperation potential between China and Europe in many fields. China is willing to strengthen market connectivity and industrial collaboration with Europe to add more momentum to their respective developments. China is also willing to enhance cooperation with the European Central Bank in areas such as international monetary system reform.
The bill interest rates are stable, with the 6-month government bond repo fluctuation only at 7 basis points, and credit growth may still be weaker than seasonality.
① In May, large banks accumulated a net Buy of bills amounting to 176.2 billion yuan, a decrease compared to the same period last year. ② Looking at the historical trend of bill interest rates in June, the market often recovers after a decline.
U.S.-China Trade Talks Are 'Going Well,' Lutnick Says. Chips, Rare Earths Are in Focus. -- Barrons.com
