According to the People's Bank of China, the growth rate of M1 in May was 6.0%, down 2.3 percentage points from the previous month and hitting a two-year low. The growth rate of M2 was 8.3%, which was the same as last month. The difference in scissors is -2.3%, which is negative for four consecutive months, indicating that the monetary activity has declined and the liquidity of the real economy is tight.

        The analysis believes that although M2 was flat last month, considering the growth rate in the same period last year, the actual growth rate is still weak. Affected by the sharp shrinkage of off-balance sheet financing and the negative growth of bond financing, corporate deposits fell sharply. After the central bank's RRR cut, the growth rate of M2 is relatively stable, while M1 will continue to decline. It is expected that the scissors gap will continue to expand negatively.