M2 Steady in May, TSF Growth Climbs to 12.5pc

M2 increased 11.1 percent, same as in April. TSF growth ticked up to 12.5 percent, the fastest growth in 2 years. Forex reserves increased $10.2 billion thanks to the largest trade surplus in history.

Both the PPI and CPI narrowed their rate of deflation in May.

These headlines make more sense if you believe China's credit creation puts more pressure on forex reserves, and that China is focused on maintaining reserves around the present level.

Bloomberg: China Trade Surplus Surges to Record as Medical Exports Jump
SCMP: China’s May foreign exchange reserves unexpectedly rise to US$3.102 trillion