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BEIJING (Reuters) - China's bank lending was generally normal in May, while the slowdown in M2 money supply growth reflects deleveraging in the finance sector, the People's Bank of China said on Wednesday following the release of May lending and money supply data.
In a statement, the PBOC said the slower annual M2 growth, which fell to a more than two decade low of 9.6 percent in May, could be a "new normal".
Deleveraging will continue but will be balanced with the need to maintain stable liquidity, the central bank said.
Reporting by Beijing Monitoring Desk; Writing by Elias Glenn; Editing by Richard Borsuk