According to an article by China Financial Times, in April, the narrow money supply (M1) balance was 66.01 trillion yuan, a year-on-year decrease of 1.4%, causing market concern. How to understand M1 growth rate? Where does the power source for future M1 rebound come from? For this, the reporter interviewed a number of industry experts. Industry insiders believe that in the first half of the year, under the combined influence of factors such as the financial industry "squeezing water", slow fiscal efforts, etc., M1 growth rate declined. This phenomenon is not only due to weak expectations of enterprises. More fundamentally, the M1 statistical caliber does not include household demand deposits, making M1 particularly sensitive to changes in enterprise demand deposits. Looking ahead, with the increase in fiscal spending and the effects of real estate policies, M1 growth rate is expected to get rid of negative growth and rebound.
央行主管媒体：随着财政支出的发力与房地产政策效果的显现，M1增速有望摆脱负增长
According to the head of the central bank's media, with the increase in fiscal spending and the effects of real estate policies, M1 growth rate is expected to get rid of negative growth.
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