China's M2 growth to accelerate: PBOC

BEIJING -- China's broad measure of money supply that covers cash in circulation and all deposits, M2, has grew faster in the second quarter, and is expected to grow even faster in the future, the central bank said on Friday.

The outstanding broad money supply (M2) by the end of June increased 11.8 percent year on year to around 133 trillion yuan ($21.8 trillion). The pace is 0.2 percentage points faster than that registered at the end of March, the People's Bank of China (PBOC) said in its monetary policy report for the second quarter.

The PBOC attributed the M2 growth mainly to an increase of loans and securities investment, with the latter having the most significant effect.

The narrow measure of money supply (M1), which covers cash in circulation plus demand deposits, expanded 4.3 percent year on year to 35.6 trillion yuan at the end of June, according to the report.

As for the future monetary policy, the report said the PBOC will continue to be prudent and fine tune policy as circumstances change to create a financial environment conducive to the structural adjustment and upgrading of the Chinese economy.