Core Insights - The article discusses the emergence of a "money shortage era" in China, characterized by a significant increase in money supply alongside a lack of liquidity among businesses, government, and consumers [1][3]. Economic Indicators - As of July 2025, China's broad money supply (M2) reached 329.94 trillion yuan, reflecting an 8.8% year-on-year growth, which is double the GDP [1]. - Despite the increase in M2, there is a prevailing sentiment of insufficient funds across various sectors, indicating a disconnect between money supply and actual economic activity [3]. Consumer Behavior Changes - There is a notable shift in consumer preferences towards cheaper cigarettes, with low-priced options becoming popular while high-end brands see declining sales due to reduced disposable income [5]. - Foot traffic in shopping malls has decreased significantly, leading to many physical stores struggling to survive, while online shopping is preferred for its cost-effectiveness and convenience [7]. - Consumers are increasingly opting for low-priced vegetables, with high-priced options seeing reduced demand as income growth stagnates [9]. - The trend of replacing household appliances has slowed, with consumers choosing to keep appliances until they break, prompting retailers to engage in price wars to stimulate demand [11]. - The second-hand market is gaining traction, with consumers purchasing used goods across various categories, including electronics and vehicles, as a cost-saving measure [13].