China August M2 Up 7.5%, M1 Up 4.1%, Total Social Financing Stock Up 7.2%

The gap between M2 and M1 growth points to money still sitting in deposits rather than moving into active transactions, which is the signal worth watching for anyone tracking domestic liquidity conditions. Total social financing expanding faster than M2 suggests credit is being extended beyond what the banking system alone shows, a distinction that matters for reading the true pace of financing in the economy. Whether M1 closes the gap with broader money is the open question for judging if this is stabilization or just steady balance-sheet expansion.