Group 1 - The core viewpoint of the article highlights that social financing (社融) has shown a year-on-year decrease, with a stable but slowing growth rate [1] - The main drag on the increase in social financing is attributed to the decline in RMB loans and government bond issuance [1] - There is a continued weak demand for financing in the real sector, with a notable increase in bill financing [1] - The growth rates of M1 and M2 have slowed down, indicating a trend of deposit migration [1]

Investment Rating - The report maintains a "Recommended" rating for the banking industry [1]. Core Viewpoints - The growth of social financing (社融) has slowed down, with October's new social financing amounting to 814.9 billion yuan, a year-on-year decrease of 597.1 billion yuan. The total social financing stock increased by 8.49% year-on-year, with a slight month-on-month decline of 0.18 percentage points [3]. - Demand for loans remains weak, with a notable decrease in both household and corporate financing needs. In October, the balance of RMB loans grew by 6.5% year-on-year, a decrease of 0.1 percentage points from the previous month [3]. - The phenomenon of "deposit migration" continues, as M1 and M2 growth rates have declined. In October, M1 and M2 increased by 6.2% and 8.2% year-on-year, respectively, with month-on-month declines of 1 percentage point and 0.2 percentage points [3]. Summary by Sections Social Financing - In October, the new social financing was 814.9 billion yuan, down 597.1 billion yuan year-on-year. The government bond issuance has weakened its support for social financing [3]. - RMB loans decreased by 20.1 billion yuan in October, a year-on-year reduction of 316.6 billion yuan. The issuance of new government bonds was 489.3 billion yuan, down 560.2 billion yuan year-on-year [3]. Loan Demand - The demand for loans from the real economy remains weak, with household loans decreasing by 360.4 billion yuan in October, a year-on-year drop of 520.4 billion yuan. Corporate loans increased by 350 billion yuan, primarily driven by a significant rise in bill financing [3]. Deposit Trends - The total RMB deposits in financial institutions increased by 610 billion yuan in October, a year-on-year increase of 100 billion yuan. However, household deposits decreased by 1.34 trillion yuan, indicating ongoing deposit migration [3]. - Non-bank deposits increased by 1.85 trillion yuan year-on-year, reflecting a shift in capital towards more active markets [3]. Investment Recommendations - The report suggests that the weakening support from government bonds for social financing and the ongoing weak loan demand necessitate attention to the effectiveness of new policy financial tools. The banking sector's transformation driven by the 14th Five-Year Plan is expected to provide opportunities for fundamental recovery [3]. - Specific stock recommendations include Industrial and Commercial Bank of China (601398), Agricultural Bank of China (601288), Postal Savings Bank of China (601658), Jiangsu Bank (600919), Hangzhou Bank (600926), and China Merchants Bank (600036) [3].

Summary of Key Points from Conference Call Industry Overview - The conference call primarily discusses the state of the Chinese banking sector and the broader financial landscape, particularly focusing on social financing (社融) and credit data for October 2025. Core Insights and Arguments 1. **Social Financing Data**: In October, new social financing amounted to 800 billion yuan, marking the lowest level in nearly a decade and falling short of market expectations, primarily due to a year-on-year decrease of 560 billion yuan in government bonds, indicating issues with fiscal spending timing [1][2][4]. 2. **Loan Performance**: New RMB loans totaled 220 billion yuan, a year-on-year decrease of 280 billion yuan. Household loans decreased by 520 billion yuan, reflecting weak mortgage demand due to sluggish real estate sales, while mortgage rates stabilized between 3.1% and 3.3% [1][5]. 3. **Corporate Loan Demand**: There remains insufficient demand for medium to long-term corporate loans, although financing rates for emerging industries have slightly increased, indicating a willingness among companies to bear higher financing costs [1][6][7]. 4. **Deposit Trends**: The phenomenon of "deposit migration" continues, with household deposits decreasing by 770 billion yuan year-on-year, while non-bank financial institution deposits increased by the same amount, suggesting a shift of funds from household savings to equity markets [1][8]. 5. **Banking Sector Performance**: In the first three quarters, listed banks reported a net profit growth of 1.6% year-on-year, with improvements across various types of banks. The asset expansion has helped offset declining interest margins, and the reduction in impairment losses has positively impacted profits [1][11][12]. 6. **Future Outlook for Banking**: The banking sector is expected to maintain stable performance for the year, driven by asset expansion, growth in non-interest income, and reduced impairment losses. However, uncertainties related to bond market fluctuations and external macroeconomic events could impact credit costs [1][12][13]. 7. **Credit Quality**: As of the end of Q3, the non-performing loan (NPL) ratio for listed banks was stable at 1.23%. However, there are concerns regarding the rising overdue rates in retail loans and potential impacts on asset quality due to adjustments in loan support policies for real estate developers [1][20][21]. 8. **Capital Adequacy**: By the end of Q3, the core capital adequacy ratio for listed banks was 10.55%, showing an increase from the previous year, supported by government injections and favorable stock performance. This stability in capital adequacy is expected to sustain dividend payouts [1][23][24]. Other Important Insights - **Market Reaction**: The market's focus on social financing data has diminished due to the significant year-on-year decreases observed, particularly since Q2. The high base effect from previous years continues to influence current credit data [2]. - **Investment Trends**: Despite the Shanghai Composite Index reaching a ten-year high of 4,000 points, the ratio of household deposits to A-share market capitalization remains around 160%, indicating that large-scale retail investment has not yet materialized [1][10]. - **Non-Interest Income**: Non-interest income for listed banks increased by 4.6% year-on-year, benefiting from improved wealth management-related revenues and favorable capital market conditions [1][17]. This summary encapsulates the critical points discussed in the conference call, providing a comprehensive overview of the current state and outlook of the banking sector and social financing in China.

Report Industry Investment Rating No information regarding the report industry investment rating is provided in the given content. Core Viewpoints - The report focuses on the economic situation in October 2025 and the fourth - quarter economic outlook under the support of macro - policies. It predicts various economic and financial data such as industrial added value, social retail sales, fixed - asset investment, trade, inflation, GDP, and social financing credit [11]. - Although the third - quarter economic growth slowed down, with the implementation of policies like 5000 - billion - yuan new policy - based financial instruments and 5000 - billion - yuan local government debt balance quota, the economy is expected to achieve the annual growth target of about 5% [11][68]. Summary by Relevant Catalogs 1. Industrial Added Value - It is expected that the year - on - year growth rate of industrial added value in October will be 5.5%. In October, the economic prosperity declined, still in the contraction range. The production and new order indexes decreased, and the new export order was at the second - lowest level of the year. The price index showed a "hot - upstream, cold - downstream" pattern, and the economic operation had obvious structural differentiation [13]. - Looking forward, high - tech manufacturing and consumer - related manufacturing are expected to maintain resilience. However, considering the possible weakening of policy effects in the fourth quarter, combined with the weak real estate and insufficient export momentum, the year - on - year growth rate of industrial added value in the fourth quarter is expected to be 5.3% [1][20]. 2. Social Retail Sales - It is predicted that the year - on - year growth rate of social retail sales in October will be 3.0%. The real - estate post - cycle consumption and automobile sales in October may not provide strong support for social retail sales, but the service industry PMI is in the expansion range, and the consumer demand in industries such as transportation and entertainment is strong [26][28]. - In the fourth quarter, due to the weakening of the "trade - in" policy effect, slow income growth, and the high - base effect of the previous year, the year - on - year growth rate of social retail sales is expected to be about 3.1% [2][28]. 3. Fixed - Asset Investment - It is estimated that the cumulative year - on - year growth rate of fixed - asset investment in October will be - 0.7%. Infrastructure investment may decline in October, real - estate investment may continue to bottom out, while manufacturing investment maintains resilience [33][34][36]. - In the fourth quarter, fixed - asset investment is expected to continue to operate at a low level. Although policies such as new policy - based financial instruments and local government debt balance quota are in place, factors like the end of policy tool investment and the possible continued bottoming of the real - estate market may lead to a cumulative year - on - year growth rate of about - 0.5% [37]. 4. Trade 4.1 Export - It is expected that the year - on - year growth rate of exports in October will be 3.0%. Although the US has imposed additional tariffs on some industries, overall external demand remains resilient. The global manufacturing PMI in October rose to 50.8%. The export volume to the US decreased, while that to ASEAN countries remained strong. The fourth - quarter export year - on - year growth rate is expected to be 2.5% [42][44][48]. 4.2 Import - It is predicted that the year - on - year growth rate of imports in October will be 3.0%. The import sub - item of the manufacturing PMI in October decreased, and the import is expected to decline compared with September. However, with the reduction of trade frictions and the release of domestic demand in the second half of the year, the annual import growth rate may turn slightly positive [50]. 5. Inflation - In terms of CPI, it is expected that the year - on - year growth rate of CPI in October will be flat. In October, the pork price continued to decline, while the agricultural product wholesale price increased significantly. The year - on - year growth rate of CPI in the fourth quarter is expected to be about 0.3% [55]. - Regarding PPI, it is estimated that the year - on - year growth rate of PPI in October will be - 2.2%. The price of upstream raw materials such as coal and steel fluctuated, while non - ferrous metals strengthened. The PPI in October is expected to show a trend of "month - on - month improvement and narrowing year - on - year decline", and the year - on - year growth rate of PPI in the fourth quarter is expected to be about - 2.3% [62]. 6. GDP - It is expected that the year - on - year growth rate of GDP in the fourth quarter will be 4.6%. In October, the manufacturing PMI showed a "weak supply and demand" pattern. The GDP growth rate in the fourth quarter may slow down marginally, but the annual growth target of about 5% can be achieved [68]. 7. Social Financing Credit 7.1 Credit - It is predicted that the new credit in October will be 3300 billion yuan. In October, the bill rate fluctuated downward, indicating weak real - economy financing demand. The new credit of various sectors is estimated as follows: enterprise short - term loans will increase by - 1500 billion yuan, enterprise long - term loans will increase by 1800 billion yuan, household short - term loans will increase by 100 billion yuan, household long - term loans will increase by 900 billion yuan, and bill financing will increase by 2000 billion yuan [74][86]. 7.2 Social Financing - It is expected that the new social financing in October will be 1.0 trillion yuan, and the year - on - year growth rate of social financing stock is expected to be 8.6%. The net financing of government bonds is expected to be about 5500 billion yuan, the net financing of enterprise bonds is about 1900 billion yuan, and the non - standard financing is about - 1600 billion yuan. The M2 year - on - year growth rate in October is expected to fall to 8.0% [87][93].

Investment Rating - The report maintains an "Overweight" rating for the banking sector, indicating a positive outlook for the industry compared to the overall market performance [3][25]. Core Insights - The financial data for September 2025 shows a decrease in new social financing (社融) by 335.2 billion year-on-year, with a total of 7.23 trillion added in the third quarter, reflecting a slowdown in credit demand [3][5]. - M1 growth reached 7.2% year-on-year, the highest since March 2021, suggesting increased business activity, while M2 growth was 8.4%, indicating a slight decline [4][8]. - The shift from "scale priority" to "efficiency-oriented" lending is a clear trend in the industry, with banks focusing on quality over quantity in their loan portfolios [4][3]. Summary by Sections Financial Data Overview - In September 2025, new loans totaled 1.29 trillion, a decrease of 300 billion year-on-year, with the total for the first nine months at 14.75 trillion, down 1.27 trillion from the previous year [4][3]. - The M1-M2 spread narrowed to -1.2 percentage points, the lowest since 2021, driven by increased liquidity in both corporate and personal deposits [4][8]. Loan Dynamics - Corporate loans saw an increase of 1.62 trillion in September, with short-term loans contributing significantly to this growth [4][3]. - Residential loans remained stable, but short-term loans showed a notable decrease, indicating weak demand for leverage among consumers [4][18]. Social Financing and Government Bonds - The contribution of government bonds to social financing turned negative, with a significant drop in new government bonds issued in September, totaling approximately 1.2 trillion, down 347.1 billion year-on-year [4][3]. - The overall social financing growth rate was 8.7% year-on-year, but this reflects a slowdown compared to previous periods [5][7]. Investment Recommendations - The report suggests a focus on leading banks and quality regional commercial banks, highlighting the potential for value recovery in the banking sector [4][20]. - The current dividend yield for the banking sector has returned to an attractive range, supporting the outlook for stable earnings growth [4][20].

Investment Rating - The report maintains a "Recommended" rating for the banking sector, indicating a positive outlook for the industry [1]. Core Insights - The social financing (社融) growth exceeded expectations, with June's new social financing reaching 4.2 trillion yuan, a year-on-year increase of 900.8 billion yuan. The total social financing stock grew by 8.9% year-on-year, with a month-on-month increase of approximately 0.2 percentage points [4]. - The demand for financing is showing signs of improvement, with both corporate and household credit increasing. The total RMB loans increased by 2.36 trillion yuan in June, a year-on-year increase of 171 billion yuan, marking a positive contribution to social financing growth [4]. - The report highlights that government bonds continue to be a major contributor to social financing growth, with new government bonds issued amounting to 1.35 trillion yuan in June, a year-on-year increase of 507.2 billion yuan [4]. - The M1 and M2 money supply indicators showed significant recovery, with M1 growing by 4.6% year-on-year and M2 by 8.3% year-on-year, indicating improved liquidity in the financial system [4]. Summary by Sections Social Financing Overview - In June, the new social financing was 4.2 trillion yuan, with a year-on-year increase of 900.8 billion yuan. The total stock of social financing grew by 8.9% year-on-year [4]. - The government bond issuance in June was approximately 2.77 trillion yuan, an increase of 818 billion yuan compared to the same period last year [4]. Credit Demand - By the end of June, the balance of RMB loans from financial institutions grew by 7.1% year-on-year. The new loans in June amounted to 2.24 trillion yuan, a year-on-year increase of 110 billion yuan [4]. - Household loans increased by 597.6 billion yuan, with short-term loans rising by 262.1 billion yuan, driven by consumption demand during promotional events [4]. Money Supply and Liquidity - M1 and M2 growth rates were 4.6% and 8.3% year-on-year, respectively, with month-on-month increases of 2.3 percentage points and 0.4 percentage points [4]. - Financial institutions' RMB deposits increased by 8.3% year-on-year, with a monthly increase of 750 billion yuan in June [4].

1. Report Industry Investment Rating No information about the industry investment rating is provided in the given content. 2. Core Viewpoints of the Report - The non - ferrous metals sector showed a pattern of rising and then falling due to the decline in risk appetite. The copper market is affected by various factors such as macro - economic data, raw material supply, and demand. The zinc market is expected to be weak in the short - term with a supply increase in June. The nickel and stainless - steel market is in a weak and volatile state, influenced by geopolitical risks, policy changes, and supply - demand dynamics [1][93][209] - For copper, due to the complex macro - environment and changes in the supply - demand relationship in the industrial chain, the copper price has a risk of falling from high levels. For zinc, considering the supply recovery in June and the weakening demand, the zinc price is expected to decline, and short - selling is recommended. For nickel and stainless - steel, affected by geopolitical risks and policy changes, the prices are expected to be weak and volatile [9][93][209] 3. Summaries Based on the Table of Contents 3.1 Non - ferrous Metal Price Monitoring - The report monitors the closing prices of various non - ferrous metals, including the dollar index, exchange rate CNH, and the prices of industrial silicon, lithium carbonate, copper, aluminum, zinc, lead, nickel, tin, alumina, and stainless steel. It also provides their daily, weekly, and annual price changes [6] 3.2 Copper (CU) - **Macro Factors**: The Sino - US economic and trade negotiations had a general market response. The domestic social financing and credit data improved slightly in May, but the demand - side expectations need to be further improved. The US inflation continued to decline, but the expectation of interest - rate cuts did not rise significantly [9] - **Raw Material End**: The spot processing fee of copper ore decreased slightly, and the copper ore supply remained tight. The domestic copper ore port inventory increased. The production plan of Kamoa - Kakula Copper Mine was reduced due to the flooding incident [9] - **Smelting End**: The loss of smelters using spot copper ore remained around 2950 yuan/ton, while those using long - term contracts turned from near - break - even to a profit of 40 yuan/ton. The domestic copper production in May increased and is expected to remain high in June [9] - **Demand End**: With the arrival of the off - season in May and the high copper price, the domestic copper product operating rate declined slightly [9] - **Inventory**: The domestic copper social inventory decreased slightly, the US copper inventory increased, and the LME copper inventory decreased. The global visible copper inventory decreased slightly [9] - **Investment Viewpoint**: The copper price is expected to be weak and volatile. The macro - market sentiment is complex, and the industrial support is weakening, so there is a risk of the copper price falling from high levels [9] - **Trading Strategy**: Short - term high - level volatility for single - side trading and positive spread arbitrage for Shanghai copper. Attention should be paid to the US tariff policy, copper inventory, and the mid - year negotiation of copper ore processing fees [9] 3.3 Zinc (ZN) - **Macro Factors**: The Middle - East conflict escalated, and the US inflation data cooled down, increasing the expectation of two interest - rate cuts by the Fed this year [93] - **Raw Material End**: The domestic processing fee remained unchanged, and the import processing fee increased. The zinc concentrate port inventory decreased, but the raw material supply is expected to be stable and abundant in the future [93] - **Smelting End**: Some previously shut - down smelters in Henan resumed production last week, and more are expected to resume in June. The production is expected to increase by more than 20,000 tons in June but may decline in July due to some planned shutdowns. The inflow of imported goods has an impact on the spot premium [93] - **Demand End**: The off - season and high - temperature weather in the South have suppressed terminal demand. The export demand is uncertain due to tariff disturbances [93] - **Inventory**: The social inventory of zinc ingots decreased again. As of June 12, it was 7.71 million tons, a decrease of 0.46 million tons from last Thursday. The inventory turning point may become clear in mid - to late June [93] - **Investment Viewpoint**: The zinc price is expected to decline, and short - selling is recommended [93] - **Trading Strategy**: Short - selling for single - side trading and waiting for opportunities for arbitrage. Attention should be paid to macro - risks and the uncertainty of smelter shutdowns [93] 3.4 Nickel - Stainless Steel (NI·SS) - **Macro Factors**: The Israel - Iran conflict intensified, increasing market risk aversion. The US announced tariffs on steel - made household appliances, which may affect the terminal demand for nickel and stainless steel. The domestic social financing growth in May was stable, and the M2 - M1 gap narrowed [209] - **Raw Material End**: The Philippines removed the ban on nickel ore exports, which weakened the market sentiment in the short - term. The Indonesian nickel ore premium remained stable, but the demand for nickel ore procurement may weaken due to the increase in the average inventory of pyrometallurgical smelters. The domestic port inventory decreased slightly due to the impact of rainfall in the Philippines [209] - **Smelting End**: The production of pure nickel decreased slightly in May. The price of nickel iron decreased, and the supply pressure remained. The MHP coefficient was stable, but some nickel sulfate enterprises still have the expectation of production cuts. In the long - term, the new production capacity of primary nickel in Indonesia is expected to continue to be released [209] - **Demand End**: The stainless - steel market is in the off - season, with weak spot transactions. The production of some steel mills is expected to decrease slightly in June. The new - energy vehicle production and sales remained high, but the raw material inventory of precursors has accumulated [209] - **Inventory**: The inventory decreased slightly but remained at a high level. As of Friday, the LME nickel inventory was 197,500 tons (- 1.3%), and the SHFE nickel inventory was 25,600 tons (+ 0.3%) [209] - **Investment Viewpoint**: The nickel price is expected to be weak and volatile. In the long - term, there is still pressure of oversupply for primary nickel. Attention should be paid to the cost range of electrowinning nickel and resource - country policies [209] - **Trading Strategy**: Short - term short - selling for single - side trading and waiting for opportunities for arbitrage. Attention should be paid to nickel - related policies in resource - rich countries and global macro - disturbances [209]

1. Report Industry Investment Rating The document does not provide the industry investment rating. 2. Core Viewpoints of the Report - The bond market is in a low - volatility shock state, waiting for further signals. The short - end may show a shock - strong pattern, but a trend - like decline may require a rate cut. The upside space for the long - end is relatively limited [5][34]. - The pressure on the liability side of large banks is relatively controllable, but the pressure on certificate of deposit (CD) renewal at the end of the month and quarter needs to be observed. In the long run, the "deposit transfer" to non - banks may ease the upward pressure on CD prices [4][34]. 3. Summary by Relevant Catalogs 3.1 Bond Market Performance - From June 9 - 13, the bond market was in a narrow - range shock. Short - end and long - end performed well, while the decline of 5Y bonds was limited. By June 13, the yields of 1Y, 5Y, 10Y, and 30Y government bonds changed by - 1, - 0.1, - 1.1, - 2.7BP respectively compared to June 6 [1][7][8]. - Most yields of major - term CDs declined. The yields of 1M, 3M, 6M, 9M, and 1Y CDs changed by + 0.3, - 2.0, - 1.0, - 0.8, - 0.8BP respectively [8]. 3.2 Funding Situation - This week, the funding was first tight and then loose. DR001 fell below 1.4%. The net financing of large state - owned banks reached a high of 4.27 trillion yuan. Although the CD maturity scale was large, CD yields remained stable [2][11][12]. - The central bank's open - market operations showed a net withdrawal of 727 billion yuan this week. The average weekly values of DR001, R001, DR007, and R007 declined compared to the previous week. The phenomenon of funding stratification was prominent but still at a low level [12]. 3.3 May Social Financing - In May, the overall social financing and credit were in line with expectations. The year - on - year growth rate of social financing stock was flat, while that of loans continued to decline slightly, possibly due to government bonds replacing corporate loans [19]. - Attention should be paid to the weak long - term corporate loans, which may be related to short - term household loans and M2. M1 increased by 0.8pct year - on - year, and long - term household loans improved marginally, indicating better business expectations and spending willingness [20][21]. 3.4 Liability - Side Pressure - The pressure on the liability side of large banks is relatively controllable. The impact of previous deposit rate cuts since 2022 has been mild, and the central bank's support remains. This week, large banks' net lending increased, and CD net financing was negative [25][26][28]. - Next week, the funding will face multiple disturbances, including tax deadlines, MLF maturities, and large CD maturities. However, the pressure on the liability side is generally controllable [32]. 3.5 Next Week's Focus - On June 16, data such as May fixed - asset investment, social retail sales, industrial added value, and unemployment rate will be released. Other important data from various countries will also be released from June 17 - 20 [35][36].

Macro Overview - The People's Bank of China will have a total of 16,178 billion yuan in reverse repos maturing this week, with 10,870 billion yuan maturing on Tuesday and 5,308 billion yuan on Wednesday [3] - The central bank will also release social financing and credit data at unspecified times this week [3] Industry Dynamics - On May 7, the U.S. EIA will release oil inventory data and a monthly short-term energy outlook report [5] - On May 8, the Federal Open Market Committee (FOMC) will announce interest rate decisions, followed by a press conference by Federal Reserve Chairman Jerome Powell [5] - On May 9, several Federal Reserve officials, including New York Fed President John Williams and Chicago Fed President Austan Goolsbee, will deliver speeches [5] - On May 7, China will report its foreign exchange reserves for April [5] - On May 9, China's General Administration of Customs will release April import and export data, and the Ministry of Finance plans to issue 71 billion yuan in long-term special bonds for the first time [5] - On May 10, China will publish monthly reports on CPI and PPI [5] - On May 6, Elon Musk's Grok 3.5 model was unveiled [5] - On May 7, Lenovo will hold its 2025 Innovation Technology Conference in Shanghai [5] - On May 8, the 27th Beijing Science and Technology Expo will take place at the National Convention Center [5] - On May 9, the 25th China Retail Industry Expo will be held at the Shenzhen International Convention and Exhibition Center [5] - On May 7, BeiGene (06160.HK) will announce its earnings [5] - On May 8, SMIC (00981.HK) and Hua Hong Semiconductor (01347.HK) will release their earnings, and "Hushang Ayi" (02589.HK) will be listed [5]

Group 1: Financial Data Overview - In Q1 2025, the total social financing increased by 15.18 trillion yuan, with March contributing 5.89 trillion yuan, a year-on-year increase of 1.06 trillion yuan[2] - The increase in RMB loans for Q1 2025 was 9.78 trillion yuan, with March alone adding 3.64 trillion yuan, a year-on-year increase of 0.55 trillion yuan[2] - The M2 growth rate in March was 7%, unchanged from the previous month, while M1 grew by 1.6%, up from 0.1%[2] Group 2: Economic and Policy Implications - The government bond financing in March was 1.48 trillion yuan, a year-on-year increase of 1.02 trillion yuan, indicating strong fiscal support[6] - The increase in corporate loans was significant, with March seeing 2.84 trillion yuan in new loans, a year-on-year increase of 5 billion yuan[11] - Despite the recovery in corporate financing, household loan demand weakened, with March's new household loans at 9.85 billion yuan, a year-on-year increase of 447 billion yuan[12] Group 3: Monetary Policy Outlook - The monetary policy remains "moderately loose," with potential for rate cuts depending on domestic demand recovery and external economic conditions[3] - The central bank's focus on macro-prudential management of the bond market indicates a cautious approach to interest rate risks[21] - Future monetary policy tools will include targeted cuts and structural tools to support key sectors like technology and infrastructure[36]