China's June Credit Growth Slows to 5.2%, PBOC Boosts Liquidity Injections to 700B Yuan in July

According to the People's Bank of China, credit outstanding growth slowed by 0.3 percentage points to 5.2% year-over-year in June, while social financing stock growth fell to 7.4% and M2 growth declined to 8.0%. To support economic recovery, the PBOC increased liquidity operations, injecting 700 billion yuan net through reverse repos and 200 billion yuan through MLF in early July. Zhao Wei, chief economist at Shenwan Hongyuan Securities, noted that if domestic demand recovery remains unstable, fiscal and monetary policies may coordinate to strengthen macroeconomic resilience.
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