AI Data Insight
China's latest released Q2 2026 narrow money supply (M1) YoY growth rate is 5.0%, a slight decline from the previous 5.1% and lower than the market expectation of 5.2%. Constrained by weak household willingness to leverage and the transition of real economy financing demand, new RMB loans turned negative in a rare occurrence. The scissors difference between M2 and M1 also indicates that funds still tend to remain stagnant within the banking system.