Monetary policy to remain prudent in H2

China's monetary authority will maintain a prudent monetary policy in the second half of this year, although some external factors may add to economic growth pressure, according to the country's central bank.

The growth pace of M2, a broad measure of money supply that covers cash in circulation and all deposits, slowed to 8.1 percent by the end of July, its lowest level since December 2018, data from the People's Bank of China, the central bank, said on Monday.

New yuan-denominated loans stood at 1.06 trillion yuan ($150.06 billion) in July, down from 1.66 trillion yuan in June and 1.18 trillion yuan in May, falling short of analysts' expectations, according to the official data.