Don’t Fall for the Bait! ⚠️

I’ve seen many people sharing the Chinese M1 chart, which seems to have “doubled” overnight.

It DID NOT double!

This is due to a change in the M1 calculation by the PBoC. Traditionally, M1 included cash in circulation (M0) and corporate demand deposits.

With the update, individual demand deposits and prepaid funds held by non-bank payment institutions have also been incorporated.

But don’t be fooled—China is still expanding its monetary base and injecting liquidity through other tools.

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