The People's Bank of China officially reported today that M2 money supply growth slowed to 7.2% year-on-year in September, falling short of the forecasted 7.4% and down from August's 7.5%. Simultaneously, M1 growth dropped to 3.2% from 4.1%, while M0 growth moderated to 10.6% from 11.2% in the previous period.

This broad-based deceleration highlights persistent weakness in domestic credit creation and sluggish private sector demand despite recent monetary easing efforts. The widening gap between target growth and actual money supply indicates that households and corporations remain cautious about taking on new leverage.

For global markets, cooling liquidity in the world's second-largest economy tempers raw material demand while fueling expectations for more aggressive fiscal and monetary stimulus from Beijing. Treasury yields and currency markets are closely tracking the risk of prolonged deflationary pressures weighing on global trade activity.

In crypto, soft domestic liquidity may restrain short-term capital outflows from Asia into digital assets like $BTC . However, expectations of impending quantitative easing and rate cuts from policymakers could ultimately inject fresh liquidity into global risk assets over the medium term. #ChinaMacro #PBOC #MoneySupply