Money Supply Growth

M2, the broadest measure of money supply growth, expanded 18.4 percent in June, the slowest pace in six months, the China Securities Journal said today, citing unidentified people. The central bank declined to confirm the report.

The reported growth, should it be accurate, suggests the central bank's efforts to drain money from the financial system are working, Standard Chartered Bank economist Stephen Green said in a note to clients.

In addition to flooding the economy with cash, the swelling trade surplus also risks causing a clash with the U.S., the top destination for Chinese-made goods.