Chinese banks are currently facing significant funding pressure, a situation exacerbated by recent monetary easing efforts that have inadvertently led to a stock market rally while simultaneously reducing demand for debt products. As funding costs continue to rise, banks are struggling to secure adequate liquidity, despite government stimulus aimed at bolstering the economy. Notably, between Tuesday and Friday, Chinese money market liquidity experienced a dramatic shift, moving from a deficit of RMB 1.8 trillion to a surplus of RMB 0.5 trillion, resulting in a net inflow of RMB 2.3 trillion (approximately $325 billion). This liquidity struggle highlights the complexities of the current financial landscape in China, where the money supply is reported to be double that of the United States.