¡¡BEIJING, Sept. 12 (Xinhua) -- Money supply grew less slowly in August, Su Ning, deputy governor of the People's Bank of China, said here Monday at the China Business Summit 2006.

    No specific figures were provided, but the central bank will release the August money supply figure later this week.

    M2, the broad measure of money supply covering cash in circulation and all deposits, grew 18.4 percent in July over the June figure of 32.28 trillion yuan (4.35 trillion US dollars). M2 also rose 18.4 percent in June and 19.1 percent in May.

    Su said the increase in the deposit reserve ratio had helped rein in money supply growth.

    The central bank raised banks' deposit reserve ratio by 0.5 percentage points in June and a further 0.5 percentage points in August, raising the reserves that most banks are required to deposit with the central bank to 8.5 percent.

    The two hikes will take 300 billion yuan out of circulation and help tighten up banks' liquidity management, curb the excessive growth of money and credit and maintain the economic growth.

    He said the central bank is keeping a close eye on the situation in the real estate industry and price movements and will make efforts to cool down the red-hot market.

    Su said no decision had yet been taken on whether or not the 25percent threshold for ownership of a Chinese bank by a foreign bank will be raised.

    Chinese government rules state that a foreign bank must hold less than 20 percent of the shares in a Chinese bank, and total foreign ownership cannot exceed 25 percent. Enditem