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BEIJING, June 20 (Xinhua) -- The market fears a cash crunch in late June as seasonally tight liquidity meets the mid-year macro-prudential assessment and tightening regulations in the banking sector.

However, volatile market adjustments, seen in 2013 due to similar regulatory tightening, will not happen as China's deleveraging process is manageable and balanced.

China's financial regulators have rolled out a string of harsh regulations to crack down on financial irregularities in the past three months, with palpable effects.

The broad measure of money supply Authentic Josh Norman Jersey , M2, hit a record low in May, growing at single-digit speed, according to the People's Bank of China (PBOC).

While keeping cash conditions relatively tight to underpin the government's deleveraging efforts, authorities have been careful not to squeeze liquidity too much to avoid dampening demand.

PBOC data shows that the total social financing and Chinese yuan loans both increased year on year in May, indicating robust financial support in the real economy.

Meanwhile Authentic Trent Williams Jersey , recent economic indicators show that the economy is expanding steadily with strong consumption and slightly slower investment.

"Slow M2 growth might continue in the near future as deleveraging efforts continue, but deleveraging too fast might raise financing costs for enterprises, hurting the real economy," said Lian Ping, chief economist with the Bank of Communications.

Compared with the clampdown on risk in 2013, China is deleveraging the economy in a more pragmatic Authentic Adrian Peterson Jersey , balanced and coordinated manner, according to a research note from the China International Capital Corporation (CICC).

Chinese financial regulators has improved coordination to maintain stable liquidity conditions and anchor market expectations since May.

The PBOC has increased its net open market operation injections recently, injecting over 400 billion yuan (58.6 billion U.S. dollars) into the market last week, nearing a five-month high.

Meanwhile, local government bond insurance also accelerated while the top banking regulator decided to give banks more time to check and rectify their problems.

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