China Monetary Expansion Continues In May

All of China monetary aggregates rose  in May: M0 was up 15.3%; M1 was up 29.9%; M2 was up 21.0%. New loan issuance was also strong (up 21.5% YoY).

If they don’t tighten fast, they will miss the opportunity…and the bubble bursts in an ugly way.

Chart 1. China Monetary Aggregates

Source: Bloomberg

Chart 2. China New Loans

Source: Bloomberg

This entry was posted on Friday, June 11th, 2010 at 3:52 am and is filed under China. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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