By Jennifer Hughes in Hong Kong
Last time China’s companies held this much money to hand, it presaged an investment boom and better growth. But no-one is predicting that this time round.
China’s M1, or its narrow money supply, jumped 24.6 per cent in June while M2, the broader measure, rose 11.8 per cent. The gap between the two is now at its highest since January 2010 – and it is rising sharply.Continue reading: China, money supply and John Maynard Keynes