China: Money Supply - M1

Macro

2026-05-15

Description

China Money Supply - M1 is compiled and published by the People's Bank of China (PBOC) to measure the total amount of cash in circulation plus corporate demand deposits within the economy.

M1 reflects immediate payment capacity and liquidity, and it is often used to observe short-term dynamics in economic activity and consumption expenditure. Growth in M1 typically indicates an increase in cash and liquidity demand from businesses and consumers, signaling economic expansion, while a decrease in M1 may reflect economic slowdown or contraction in market liquidity.

The PBOC has implemented the newly revised Narrow Money (M1) statistical scope starting from January 2025. This revision further includes Individual Demand Deposits and Customer Reserve for Non-bank Payment Institutions, based on the previous M1 definition.

The revised M1 includes: Currency in Circulation (M0), Corporate Demand Deposits, Individual Demand Deposits, Customer Reserve for Non-bank Payment Institutions.

Published by
People's Bank of China (Choice)
Frequency
Monthly
Next Update

AI Data Insight

China's narrow money supply (M1) for Q2 2026 dropped to 1,145,833.73 billion RMB, a significant decline compared to the previous Q1 2026 value of 1,193,200.0 billion RMB. Although the market expected momentum to improve under policy efforts, the latest data highlights a slowdown in the expansion of corporate and personal demand deposits. Going forward, high attention must be paid to the PBOC's counter-cyclical adjustments and the possibilities of RRR cuts and interest rate cuts to cope with potential liquidity stagnation risks.

AI Data Insight

China's narrow money supply (M1) for Q2 2026 dropped to 1,145,833.73 billion RMB, a significant decline compared to the previous Q1 2026 value of 1,193,200.0 billion RMB. Although the market expected momentum to improve under policy efforts, the latest data highlights a slowdown in the expansion of corporate and personal demand deposits. Going forward, high attention must be paid to the PBOC's counter-cyclical adjustments and the possibilities of RRR cuts and interest rate cuts to cope with potential liquidity stagnation risks.

Description

China Money Supply - M1 is compiled and published by the People's Bank of China (PBOC) to measure the total amount of cash in circulation plus corporate demand deposits within the economy.

M1 reflects immediate payment capacity and liquidity, and it is often used to observe short-term dynamics in economic activity and consumption expenditure. Growth in M1 typically indicates an increase in cash and liquidity demand from businesses and consumers, signaling economic expansion, while a decrease in M1 may reflect economic slowdown or contraction in market liquidity.

The PBOC has implemented the newly revised Narrow Money (M1) statistical scope starting from January 2025. This revision further includes Individual Demand Deposits and Customer Reserve for Non-bank Payment Institutions, based on the previous M1 definition.

The revised M1 includes: Currency in Circulation (M0), Corporate Demand Deposits, Individual Demand Deposits, Customer Reserve for Non-bank Payment Institutions.

Published by
People's Bank of China (Choice)
Frequency
Monthly
Next Update