Rare consecutive decline! Where did the 2 trillion yuan in residents' deposits go?

In May, the financial data was released, and the topic of "moving deposits" once again attracted market attention. Data released by the central bank recently showed that after a decrease of 1.94 trillion yuan in April, resident deposits continued to shrink by 110 billion yuan in May. The total decrease over the two months was 2.05 trillion yuan, marking rare consecutive negative growth in resident deposits in nearly 10 years. At the same time, non-bank financial institutions' deposits increased by a total of 3.61 trillion yuan, continuing the "seesaw" effect. Another phenomenon that has attracted attention is that the household sector continues to deleverage, with a reduction of 141.2 billion yuan in household loans in May, a year-on-year decrease of 195.2 billion yuan. What is the logic behind households moving deposits while shrinking their balance sheets? How much funds will flow into the stock market? As the year is already approaching halfway, the market is closely monitoring these questions. Regarding the "moving deposits" issue, the central bank has previously clarified. Industry experts have also repeatedly pointed out that the flow of household deposits to non-banks only changes the structure of bank deposits, reflecting the continuous deepening of China's financial market. A more positive signal worth noting is that as the growth rate of household deposits continues to decline, the "scissors difference" between it and M2 growth has continued to shrink, and has been negative for five consecutive months, indicating a trend of activating funds at the margin. Some institutional personnel believe that the circulation of funds from households to businesses and non-banks is restarting, accumulating momentum for the improvement of economic internal circulation.