China's Money Supply Growth Slows

The video discusses the slowdown in M2 growth in China, attributed to a deleveraging campaign. Despite a dip in money supply, there is a rise in new loans and aggregate financing. The challenge for policymakers is to manage speculative debt without hindering economic growth. The PBOC aims to improve credit efficiency but faces risks of a faster slowdown. The video highlights the delicate balance required in economic policy.

What actions did the PBOC take in response to the economic situation?

What risks are associated with clamping down on funds to non-bank institutions?