On Wednesday, the People’s Bank of China said the country’s broader money supply, or M2, grew at a record-low pace of 9.6% in May from a year ago. The metric was hovering above 10.5% for most of the past year. According to Caixin, this might be another sign that shows China has made progress in cutting leverage in its bloated financial system. M2 refers to cash and checking deposits – the so-called M1 – plus assets such as money market securities and mutual funds that can be converted quickly into cash. Going forward, a relatively subdued growth of China’s M2 is set to be a “new normal,” the central bank added. Regulators in China have been trying to mop up the excesses within the financial system, which is sitting on a massive debt pile, as well as default risks, after years of credit-fueled economic growth.