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China's Monetary Turbocharger Is Running at an All-Time High

  • Ratio between M2 and base money signals robust credit demand
  • More efficient stimulus use also stores up risks for economy
Views Of Chinese Yuan As Yuan Crunch Spurs Banks to Hoard Abroad as China Curbs Outflows
Photographer: SeongJoon Cho/Bloomberg

For every yuan that the People’s Bank of China injects into the nation’s financial system, it’s up to the banks to decide how far they stretch it in the form of loans to the economy.

Right now, they’re working overtime.