Shanghai Composite and M2 Relationship

After looking at the U.S. M1 money supply and velocity versus the S&P 500, I took a look at Chinese money supply. Chinese M1 showed some relationship, but M2 was stronger. However, since M2 has expanded every single month since January 2008, the relationship is clearer when looking at the month-to-month change in M2 and the Shanghai Composite.


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