China M1 going crazy
https://tradingeconomics.com/china/money-supply-m1
Discussion
China is doing in 2025 what the US did in 2020
Sats are definitely on discount right now
No. Calculations changed.
"The PBC expanded the M1 definition to include personal demand deposits and prepaid funds held by non-bank payment institutions, in addition to the existing components of currency in circulation and corporate demand deposits. This change aimed to provide a more accurate reflection of money circulation efficiency and economic activity, acknowledging the increased liquidity of personal demand deposits facilitated by advancements in payment technologies"
Sure, there was a methodology change. But these always happen to coincide with times of monetary expansion. They are a great smokescreen for a bit (or a lot) of printing...
A similar thing happened in 2020 for US M1. Did they change calculation methodology? Yes.
Did they also print like maniacs? Also yes.
