According to the latest data from the central bank, as of the end of December, China's broad money supply (M2) reached 340.29 trillion yuan, representing a year-on-year increase of 8.5%. This figure reflects the overall trend in money supply.
Narrow Money and Currency in Circulation
The balance of narrow money (M1) was 115.51 trillion yuan, rising by 3.8% year-on-year. Currency in circulation (M0) amounted to 14.13 trillion yuan, with a year-on-year increase of 10.2%.
- The growth rate of M2 suggests that liquidity in the economy is relatively abundant.
- The moderate rise in M1 indicates stable corporate financial conditions.
- The increase in M0 highlights a higher demand for cash among the public.
Over the entire year, the central bank injected a net amount of 13.1 trillion yuan in cash, providing essential liquidity support for economic operations.