China curbs shadow banking

Non-traditional sources of finance were less prominent in last month’s aggregate finance data, showing that China is making progress on curbing shadow banking, Bloomberg reported, citing data released Friday from the People’s Bank of China. The data showed that new yuan loans played their biggest role since September 2011. M2 money supply rose 14%, compared to a 15.8% increase the month before.  New local-currency loans reached RMB860.5 billion last month, accounting for 83% of aggregate financing in June. Economist Steve Wang said banks should have a smoother second half after surviving the cash crunch with M2 growth nearly in line with government targets.