China's M2 broad measure of money supply reached 41.78 trillion
yuan (about 5.81 trillion U.S. dollars) as of the end of January,
up 18.94 percent from a year earlier.
The increment was 2.2 percentage points higher than the number
as of the end of 2007, said the central bank in a statement on
Thursday.
During the same period, the narrow measure of money supply, M1,
rose 20.72 percent to 15.49 trillion yuan but the increment was
0.33 percentage points lower than the end of 2007, the People's
Bank of China said.
M2 covers cash in circulation plus all deposits, while M1 covers
cash in circulation and corporate demand deposits.
Meanwhile, the outstanding amount of M0, or cash in circulation
hit 3.67 trillion yuan, up 31.21 percent from the same point last
year.
The figures indicate liquidity remains strong in the Chinese
economy, despite repeated government efforts to rein in liquidity
amid fears it could lead to an overheating of the economy.
(Xinhua News Agency February 15, 2008)
