China Targets 12pc Money Supply Growth in 2017
The M2 growth target was endorsed by leaders at the closed-door Central Economic Work Conference in December, according to sources with knowledge of the meeting outcome.
“It’s not necessary to maintain last year’s high money supply growth,” said a source who advises the government.
“A money supply rise of 11 percent should be enough for supporting growth, but we probably need to have some extra space, considering risks in the process of deleveraging.”
This looks like a lowering of expectations to meet reality, not a change in policy. M2 increased 11.3 percent in 2016, slower than the 13 percent target.