(Yicai) Aug. 14 -- Despite seasonal adjustment factors, the two key gauges of China's money supply and the outstanding total social financing grew at a faster pace than a month earlier in July, mainly thanks to supportive monetary policy and improved financing environment.

M2, a broad gauge that covers cash in circulation and all deposits, rose 8.8 percent to CNY329.94 trillion (USD46 trillion) at the end of July from a year earlier, up from 8.3 percent the month before, according to data from the People's Bank of China.

M1, a narrow gauge of money supply that covers cash in circulation and non-bank and non-government deposits, jumped 5.6 percent to CNY111.06 trillion (USD15.48 trillion) in the period, compared with a 4.6 percent growth in June, PBOC data also showed.

Total social financing reached CNY431.26 trillion (USD60.11 trillion) as of July 31, up 9 percent from a year earlier, according to the data from the PBOC. The figure rose 8.9 percent in June and 8.7 percent in May.

The newly-added social financing amounted to CNY1.13 trillion (USD157.5 billion) last month, up by CNY361.3 billion (USD50.3 billion) from the same period last year.

Chinese macroeconomic polices emphasize coordinated efforts, combining leverage from the government and the real economy to help ensure smooth economic circulation and provide support to credit demand growth, authoritarian market experts said.

From a long-term perspective, sustained fiscal policy efforts that fully use the fiscal multiplier effect to boost aggregate demand can contribute to better mobilizing the economy and driving it forward, the experts noted.

The balance of Chinese yuan-denominated loans stood at CNY268.51 trillion (USD37.42 trillion) at the end of July, up 6.9 percent from a year earlier, according to data from the PBOC. The experts believe this reflects the stable support that credit has been providing to the real economy.

Macroeconomic policies will maintain continuity and stability in the second half of the year, with a focus on stabilizing employment, businesses, markets, and expectations, the experts predicted. The continued economic recovery and reasonable growth in effective credit demand will be well-supported, they added.

Editor: Futura Costaglione