In August, the M1-M2 scissor difference further narrowed and funding activity increased.

The financial data released by the central bank shows that at the end of August, the narrow money supply M1 balance was 111.23 trillion yuan, a year-on-year increase of 6%, an increase of 0.4 percentage points from the previous month. The increase in M1 speed drove the M1-M2 scissor difference to continue to narrow, reaching -2.8% at the end of August, further narrowing compared to the previous month, the lowest value since June 2021. Market analysts believe that since the beginning of this year, the M1-M2 scissor difference has significantly converged, with more funds being converted into demand deposits, which is conducive to investment and other economic activities.