Industry insiders: It is advisable to use M2 as an observational indicator.

The People's Bank of China released financial data for April today. As of the end of April 2025, the broad money supply is 325.17 trillion yuan, an increase of 8% year-on-year. "In the long term, it is appropriate to use M2 growth rate as an observational indicator," industry insiders emphasize. Looking at a longer period of time, the overall growth rate of M2 in China has remained above 7%, consistently higher than nominal economic growth. However, in the short term, M2 growth rate may also be affected by market operations, behaviors of economic entities, and other factors, leading to temporary fluctuations. Industry experts stated that using M2 growth rate as an observational indicator for monetary policy is reasonable, as financial deepening and economic structural transformation have led to a weakening correlation between money supply and economic growth. Major developed economies have also gradually shifted away from focusing on total quantity indicators.