(Yicai Global) June 13 -- China's lending growth surpassed market expectations for last month though broad M2 money supply underwhelmed slightly. 

The country's new loans in May fell slightly on a monthly basis to CNY1.15 trillion (USD 179.7 billion) from CNY1.18 trillion, the People's Bank of China said in a statement. The figure surpassed market expectations of CNY1.13 trillion according to the Yicai Chief Economist Confidence Index.

China's M2 grew 8.3 percent annually to CNY174.3 trillion in May, down slightly on a market expectation of 8.5 percent. That growth rate was unchanged from the previous month and 0.8 percentage point lower from the previous year. 

Money supply is one of the economic gauges for inflation and future price levels. M2 includes all notes and coins in circulation, as well as short-term time deposits in banks and certain money market funds. 

China's social financing fell by half for the month to CNY760.8 billion from CNY1.56 trillion in April and well below an expected CNY1.37 trillion.

Editor: William Clegg