China just published the latest set of monetary statistics for June 2011.
As of the end of June, M2 money supply reached RMB78.08 trillion, increased by 15.9% over a year earlier, vs. 15.1% in May and consensus of 15.3%. M1 money supply increased by 13.1% over a year ago to RMB27.27 trillion. Currency in circulation rose to RMB4.45 trillion
Total loans outstanding reached RMB54.65 trillion, increased by 16.8% over a year ago. Within that, Chinese Yuan (or RMB) loans reached RMB51.40 trillion, increased by 16.9% from a year ago. New loans in Yuan amounted to RMB633.9 billion, above consensus of RMB622.5 billion as well as the RMB551.6 billion new loans in May, and is RMB20.7 billion more than the same month of last year. For the first half of 2011, new loans amounted to RMB4.17 trillion, RMB449.7 billion less than the same period of last year.
Total deposits reached RMB 80.30 trillion, increased by 17.5% over a year ago. Within that, Yuan deposits reached RMB78.64 trillion, increased by 17.6% over a year ago.
Of particular interest, the foreign exchange reserve was US$3.1975 trillion, increased by 30.3% over a year ago. While it is higher than US$3.0447 trillion in May, it is below consensus.
There may be doubts among policy makers on whether tightening should be continued, and we are hearing some pretty conflicting signals even from the same policy maker (i.e. Premier Wen Jiabao, who on one day said inflation is under control, and on the other day said inflation fighting is still the top priority). Time will tell.