China's liquidity condition slightly tightened at the year-end given the lower-than-expected M2 growth and new yuan loans, says HSBC economist Ma Xiaoping. China's broadest measure of money supply, M2, rose 13.9% from a year earlier at the end of November, slowing from 14.1% growth at the end of October and below economist expectations for a 14.2% rise. Earlier Tuesday, data from the central also showed that lending by Chinese banks stood at CNY522.9 billion in November, also below economist expectations. Ms. Ma believes it's in line with new leaders' pledge to have a mild recovery and attach more importance to quality of the economic growth, while the monetary policy for 2012 is loose compared with a year ago. She predicts the annual target for 14% growth in M2 could be achieved and the total new yuan loans for this year could be around CNY8.3 trillion.
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