AI Data Insight
China's recently announced Q2 2026 M1-M2 scissors gap is -3.1%, slightly narrowing from the previous -3.6%, indicating an improvement in the money supply gap. However, the data remains deeply in negative territory, reflecting that the "trend towards time deposits" in the real economy is still significant, and corporate demand deposit momentum has not yet fully recovered. The market widely expects that the People's Bank of China (PBOC) still has room for further RRR cuts or interest rate cuts in the short term to stimulate domestic demand and vitalize market liquidity.