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China M1 Data Misinterpreted: No Liquidity Injection, Say Analysts

China M1 Data Misinterpreted: No Liquidity Injection, Say Analysts
A chart showing a significant spike in China's M1 money supply has led to speculation that the Chinese government injected massive liquidity into the financial system, which could impact global markets including cryptocurrencies. However, analysts have clarified that the surge is due to a reclassification of how the metric is calculated, not an actual increase in circulating money. The expanded scope of the measurement now includes currency in circulation, funds held in checking accounts by businesses and institutions, personal demand deposits, and prepaid funds held by non-bank payment institutions. Analysts emphasize the importance of verifying official sources and understanding the context behind financial data before drawing conclusions.

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