The People's Bank of China (PBOC), the central bank, plans to redefine and announce the statistical standard for total social financing and money supply, the China Securities News reported Thursday.

The new standard has been drafted and will be released for comments and opinions.

According to the draft, total social financing will include loans of local and foreign currencies, entrusted loans, trust loans, bank acceptance bills, corporate bonds, equity financing, foreign direct investment and foreign debt. The broader statistical scope will redefine liquidity and is likely to influence regulators' judgments about inflation and their decisions when forming monetary policies, the report said.

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According to the report, the central bank will expand the measurements of money supply to M3 and M4.

M3 is a measurement reflecting the liquidity that depository corporations provide to the real economy. Deposits that are not currently included in M2 – other deposits from financial corporations, housing provident fund deposits, entrusted deposits, banks' financial planning products, foreign exchange deposits and local governments' fiscal deposits – will be calculated in M3.

M4 will measure the liquidity that all financial institutions provide to the real economy, including currency in circulation, deposits of local and foreign currencies, banks' financial planning products, repos, and financial bonds held by real sectors (including central bank bills). M4 will also incorporate warrants and asset-backed securities, securities investment funds, bank acceptance bills, trust investment plans and insurance reserves. Stocks and equities issued by finance companies will also contribute to M4.

Analysts think the future monetary policy will concern wider coverage of liquidity, which is in accordance with the diversifying social financing. They expect the expanded coverage to help create more accurate and effective monetary policies, the report said.