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Wednesday, June 19, 2013
How Come There Is Money Shortage Despite Domestic M2 Exceeds 100 Trillion?
ANBOUND

China's total amount of monetary assets available in the economy (M2) has exceeded 100 trillion yuan but why there is still money shortage in the market? One of the factors is due to the shadow banking system whereby many inter-bank lending funds are being "locked". In order to control the risks, central bank will inevitably put pressures on the banks in order to reduce risks such as mismatch maturity date and currency mismatch.

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