China: Financial Deepening (M2/GDP)

Macro

2026-03-01

Description

China's M2/GDP is mainly used to measure the proportion of transactions conducted through currency as a medium in all economic transactions. It is a primary indicator for measuring the financialization of a country's economy. Generally speaking, the larger the ratio, the higher the degree of economic monetization.

Published by
Choice Eastmoney
Frequency
Yearly
Next Update

AI Data Insight

In 2025, China's M2/GDP ratio climbed significantly to 242.75%, surging over 10 percentage points from the previous value of 232.38%, setting a new historical record. This trend demonstrates that the growth rate of broad money supply (M2) far exceeds nominal GDP growth. It reflects that under deflationary pressure and a sluggish real estate market, the real economy's ability to absorb funds has weakened, raising the risk of capital "moving away from the real economy to the virtual economy."

AI Data Insight

In 2025, China's M2/GDP ratio climbed significantly to 242.75%, surging over 10 percentage points from the previous value of 232.38%, setting a new historical record. This trend demonstrates that the growth rate of broad money supply (M2) far exceeds nominal GDP growth. It reflects that under deflationary pressure and a sluggish real estate market, the real economy's ability to absorb funds has weakened, raising the risk of capital "moving away from the real economy to the virtual economy."

Description

China's M2/GDP is mainly used to measure the proportion of transactions conducted through currency as a medium in all economic transactions. It is a primary indicator for measuring the financialization of a country's economy. Generally speaking, the larger the ratio, the higher the degree of economic monetization.

Published by
Choice Eastmoney
Frequency
Yearly
Next Update