CloudC4 News

Investors are positioning for a drop in money supply growth, fearing that cash is sitting idle rather than fueling inflation.

A chart showing the divergence between PBOC liquidity injections and actual credit growth since 2023.
A chart showing the divergence between PBOC liquidity injections and actual credit growth since 2023.
Loading exclusive…

Key Points

  • M2 growth expected to slow to 7.9% from 8.0%
  • The issue is low velocity, not low supply
  • Investors are shifting from yuan exposure to gold

What To Watch

  • Actual M2 print vs 7.9% consensus
  • Yuan volatility post-release
  • Gold price reaction to liquidity fears