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
