Xin Lang Cai Jing·2025-09-15 09:19Core Insights - The People's Bank of China reported that the total social financing (TSF) increased by 8.8% year-on-year as of the end of August, but the month-on-month growth rate decreased by 0.2 percentage points [1][6] - New RMB loans in August amounted to 590 billion yuan, a year-on-year decrease of 310 billion yuan, indicating a slowdown in credit demand [1][10] - The growth rate of M1 increased to 6% while M2 remained stable at 8.8%, reflecting a shift in deposit behavior among residents [3][14] Group 1: Social Financing and Credit - As of the end of August, the stock of social financing grew by 8.8% year-on-year, but the month-on-month growth rate decreased by 0.2 percentage points [1][6] - In August, the total new social financing was 2.57 trillion yuan, which is 463 billion yuan less than the same month last year [1][8] - Government bond net financing accounted for 53% of the new social financing, but its support is expected to decline in the coming months due to a high base from last year [1][8] Group 2: Loan Demand and Rates - The total RMB loans increased by 590 billion yuan in August, which is a year-on-year decrease of 310 billion yuan [1][10] - The weighted average interest rate for new corporate loans was approximately 3.1%, showing a slight decrease of 0.1 percentage points from the previous month [2] - Residential loan demand remained weak, with new loans amounting to 30.3 billion yuan, a year-on-year decrease of 159.7 billion yuan [2] Group 3: Deposits and Monetary Supply - M1 and M2 growth rates were reported at 6% and 8.8% respectively, with M1 showing a month-on-month increase of 0.4 percentage points [3][14] - In August, new RMB deposits totaled 2.06 trillion yuan, which is 160 billion yuan less than the same month last year [3][12] - Non-bank deposits increased by 1.18 trillion yuan, indicating a shift in deposit behavior among residents [3]