China's financial markets showed renewed activity as the Shanghai Composite reclaimed the 3,400-point level for the first time in two months. Southbound net buying via the Stock Connect program reached 5 billion yuan, reflecting increased investor interest. In April, China's M2 money supply grew by 8.0% year-over-year, surpassing the estimated 7.2%, while M1 increased by 1.5% year-over-year, below the forecasted 3.2%. The People's Bank of China (PBOC) implemented its first reserve requirement ratio (RRR) cut of the year on May 15, lowering the ratio by 0.5 percentage points for financial institutions, excluding those already at a 5% RRR, and by 5 percentage points for auto finance and financial leasing companies. This move is expected to inject approximately 1 trillion yuan ($138.77 billion) in long-term liquidity into the market. Analysts cited in the China Securities Journal anticipate further RRR cuts of 100 to 200 basis points later this year. Despite the RRR cut, the PBOC drained 219.1 billion yuan from the market on May 15 through open market operations, including selling 64.5 billion yuan in seven-day reverse repos at an interest rate of 1.4%. On May 16, the PBOC net injected 29.5 billion yuan but overall drained 475.1 billion yuan on a net basis during the week. Market turnover on the Shanghai and Shenzhen stock exchanges exceeded 1 trillion yuan for the 16th consecutive trading day. The Shenzhen Component Index fell over 1% on May 15, while the Hang Seng Tech Index reversed earlier losses and turned positive, with investors closely monitoring key Chinese tech stocks.