China M2 Money Supply Data and Analysis

China's M2 money supply has been on a steady rise, reaching a record high of 173.2 trillion yuan in 2020. This represents a significant increase from the 2015 level of 108.5 trillion yuan.

The M2 money supply is a key indicator of China's economic health, and its growth has been driven by a combination of factors, including a surge in bank lending and a rise in household deposits. This growth has been particularly pronounced in urban areas, where the M2 money supply increased by 13.4% year-over-year in 2020.

The rise in M2 money supply has also led to a significant increase in consumer spending, with retail sales growing by 8.2% year-over-year in 2020. This growth has been driven by a combination of factors, including a rise in disposable income and a growing middle class.

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China's M2 money supply growth has been a topic of interest in recent years. In December 2024, the M2 growth rate was 7.3% YoY, a slight increase from the previous month's 7.1%. This growth rate is part of a larger trend in China's money supply.

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The M2 growth rate in China has been steadily decreasing over the years. In 2022, the average money supply growth was 10.6%, with a peak of 11.8% in 2022. This decrease in growth rate is a sign of the country's deleveraging efforts.

Here's a breakdown of China's M2 growth rate over the past few months:

Note that the M2 growth rate has been steadily decreasing since June 2024, when it reached a record low of 6.2%. This decrease is a sign of China's efforts to control its money supply and reduce debt.

In December 2024, China's M2 money supply growth was 7.3% YoY.

This is a notable increase from the previous month, where growth was 7.1%. The difference may seem small, but it's worth paying attention to.

The M2 growth rate has been fluctuating over the years, with a minimum of 6.2% in June 2024 and a maximum of 29.7% in November 2009.

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China's M2 money supply growth in October 2024 was a bit of a mixed bag, coming in at +7.5% vs the expected +6.9% year-over-year.

The latest Chinese credit data for October 2024 shows that new yuan loans were ¥0.5 trillion, which is a significant drop from the prior month's ¥1.59 trillion.

This brings the year-to-date total for new yuan loans to ¥16.52 trillion, which is slightly lower than the expected figure of ¥0.7 trillion.

Broad money growth is seen rebounding on a year-over-year basis, but China is still hoping to translate that into stronger credit demand next year, alongside further monetary policy easing measures.

Here's a quick look at the year-over-year growth rates for M2 money supply in China:

China's M2 growth rate has been trending downward in recent years, with a record-low pace in June 2023 at 9.4%.

China's M2 money supply has been growing at a record-low pace in recent times. In June, M2 grew 9.4% from a year earlier to 163.13 trillion yuan ($23.98 trillion).

The People's Bank of China reported that M2 growth in May was 9.6%, also a record low. This is a significant slowdown from the growth rate of M2, which was above 11.5% for most of 2016.

New credit, including bank loans, bond and equity issuances, and trust and entrusted loans, stood at 11.17 trillion yuan in the first half of 2017, up 1.36 trillion yuan from the same period in 2016.

Here's a breakdown of M2 growth in China over the past few years:

The growth rate of M2 has been slowing down over the past few years, with a significant slowdown in recent times.

China's M2 money supply has been a topic of interest in recent years, and for good reason. The country's money supply growth has been steadily increasing, with an average growth rate of 10.6% in the decade leading up to 2022.

In 2022, the money supply growth rate was even higher, at 11.8%. This is a significant increase from the previous years, and it's worth noting that the Chinese economy has been growing rapidly in recent times.

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The latest data shows that the M2 money supply growth rate slowed down in June 2024, reaching a record low of 9.4%. This is a significant decrease from the previous month's growth rate of 9.6%, and it's even slower than economists' forecast of 9.5%.

The People's Bank of China has stated that slower M2 growth actually means a more efficient use of money in the economy, as long as the real economy is sufficiently financed. This is an interesting perspective, and it highlights the importance of considering the broader economic context when analyzing monetary policy.

Here are some key statistics on China's M2 money supply growth:

It's worth noting that the M2 growth rate has been trending downwards in recent months, and this could be a sign of a more stable and efficient economy. However, it's also possible that the slowdown in M2 growth is a result of the country's deleveraging efforts, which aim to reduce debt and promote financial stability.