BEIJING, Oct. 19 --Jump of China’s M2, the broadest measure of money supply, has aroused concerns about currency oversupply, Securities Daily reported Monday.
According to the September data, the M2 balance had reached 69.6 trillion yuan ($10.5 trillion), 1.8 times of China's GDP. The M2 has increased 450 percent in the past decade, the report said.
Economists believed that the continuative M2 growth might cause inflation, yuan devaluation, bubble formation or even financial crisis.
However, Yi Gang, assistant governor of the People's Bank of China, wrote in an article that China's macro-economic policies had leeway to deal with tougher financial situations.
"Space for adequate leeway has been made a part of both monetary and fiscal policies. These policies will make sure that China can cope with any crises," the report cited Yi's article as saying.