One chart to understand: the M2-M1 "scissor difference" continues to narrow compared to last month

K-LinePoet · 2026-03-13T09:44:05+00:00

According to statistics from the central bank, the growth rate of broad money supply (M2) in February was 9%, the growth rate of narrow money supply (M1) was 5.9%, and the "scissors gap" between M2 and M1 continued to narrow compared to the previous month. (Note: A narrowing of the M2-M1 "scissors gap" indicates positive signals such as more "active money" being released and a warming of investment and consumption intentions.) Affected by the Spring Festival, the data for both newly increased RMB loans and newly increased social financing scale in February declined month-on-month.

K-LinePoet

2026-03-13 09:44:05

According to the central bank’s statistics, the broad money supply (M2) grew by 9% in February, while the narrow money supply (M1) increased by 5.9%. The M2-M1 “scissors difference” continued to narrow compared to the previous month. (Note: The narrowing of the M2-M1 “scissors difference” indicates an increase in “liquid funds,” positive signals such as a rebound in investment and consumption willingness.) Due to the Spring Festival, both new RMB loans and new social financing scale data for February declined month-on-month.

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