AI Data Insight
In May 2026 (Q2), China's M1 minus M2 negative scissors gap reached -4.0%, widening further from the previous -3.1% and breaking some market expectations of a narrowing gap. The data reflects that enterprises and households lean towards time deposits, leading to a lack of active funds, while new financing demand in the real economy remains weak. Going forward, the market will need to observe the effectiveness of the central bank's interest rate cuts and easing policies.