Central bank figures confirm that rotation out of bank deposits fuelled bull run, as Chinese equities now stand out among asset classes
Households continued to shift money into mainland China’s US$12.7 trillion stock market last month, suggesting that a rally in equities has room to run, according to data published by the central bank.
Deposits at non-banking financial institutions rose by 1.17 trillion yuan (US$164.3 billion) in August, marking a second month of increases after July saw an inflow of 2.15 trillion yuan, data from the People’s Bank of China showed. The figure covers money parked at brokerages, mutual-fund companies and trust firms.
M1, a money-supply gauge measuring demand deposits that can be taken out from banks at any time, rose 6 per cent year on year, the fastest since January 2023, indicating that money was primed for investment after conversion from term deposits, according to the data.
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