⚡️China's M2 money supply sets record at 242.75% of GDP - highest among major global economies


China's M2/GDP reached 242.75% in 2025, up from 232.38% in 2024. As of May 2026, M2 stood at 353.67 trillion CNY (~$51-52T), up 8.6% YoY.
In the US, this M2/GDP ratio is only around 100-110%.
This ratio is a legacy of the credit expansion program after the 2008-2009 crisis, with excess debt never fully resolved. The biggest problem is that despite liquidity easing, money still doesn't flow anywhere (including into risk assets).
Real estate, which has been the main credit absorption channel for decades, is now severely stagnant as developers deleverage or default en masse. The public has stopped spending, leading to deflationary pressures that slow nominal GDP, further stretching the M2/GDP ratio beyond its real level.
The PBOC aims to reduce M2 growth to 7.5-8% in 2026 (vs. 9-10% per year during 2021-2025), shifting to price-based regulation instead of credit injection.
All data shows that China's capital efficiency is at an all-time low. If Beijing is forced to ease capital controls to relieve internal pressure, crypto will certainly witness a massive influx of funds into risk assets (including crypto, of course).
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