Core Viewpoint - The article highlights the recent financial data released by the People's Bank of China, indicating a significant increase in social financing and loans, alongside a stable growth in broad money supply (M2) despite a slight month-on-month decline [1][2]. Financial Data Summary - In May, the incremental social financing reached 2.29 trillion yuan, an increase of 224.7 billion yuan year-on-year, with new RMB loans amounting to 620 billion yuan [1][3]. - As of the end of May, the year-on-year growth of broad money (M2) was 7.9%, showing a slight decrease of 0.1 percentage points from the previous month but 0.9 percentage points higher than the same period last year [1]. Government and Corporate Debt Impact - The growth in social financing was primarily driven by government and corporate bonds, with net financing from government bonds reaching 1.46 trillion yuan in May [3][4]. - The issuance of new special bonds by local governments hit a record high of 443.2 billion yuan in May, indicating strong demand in key sectors like real estate [3][4]. Loan Demand and Structure - Despite a year-on-year decline in new RMB loans, the total RMB loan balance grew by 7.1% year-on-year, reflecting stable loan demand [5][6]. - In May, corporate sector loans accounted for nearly 530 billion yuan, supported by recent interest rate cuts and favorable external trade conditions [6][7]. Alternative Financing Trends - The increasing issuance of government and corporate bonds has created a substitution effect for loans, with bonds and loans together accounting for nearly 90% of social financing [8][9]. - The shift towards direct financing through bonds is seen as beneficial for high-growth sectors, aligning with the ongoing economic transformation [9]. Deposit and Loan Growth Discrepancies - In May, new RMB deposits surged to 2.18 trillion yuan, contrasting with the decline in new loans, attributed to the diversification of financial institutions' assets and changes in financing structures [11][12]. - The article notes that the growth of deposits and loans may not always align due to various influencing factors, including the rise of wealth management products and market conditions [12][13]. Increase in "Active Money" - The narrow money supply (M1) grew by 2.3% year-on-year, indicating an increase in "active money" which reflects improved market confidence and a potential uptick in economic activities [14][15].

Monetary Growth - As of the end of April, the broad money supply (M2) reached 325.17 trillion yuan, growing by 8% year-on-year [2] - The narrow money supply (M1) stood at 109.14 trillion yuan, with a year-on-year increase of 1.5% [2] - The currency in circulation (M0) amounted to 13.14 trillion yuan, reflecting a year-on-year growth of 12% [2] Loan and Deposit Statistics - By the end of April, the total RMB loans increased by 1.006 trillion yuan in the first four months, with the total RMB loan balance at 265.7 trillion yuan, up 7.2% year-on-year [3] - The total RMB deposits rose by 1.255 trillion yuan in the first four months, with the RMB deposit balance at 314.78 trillion yuan, also up 8% year-on-year [4] Interbank Market Activity - In April, the average weighted interest rate for interbank RMB lending was 1.73%, down 0.12 percentage points from the previous month and 0.14 percentage points from the same period last year [5] - The total transaction volume in the interbank RMB market reached 176.45 trillion yuan in April, with an average daily transaction of 8.02 trillion yuan, a year-on-year decrease of 4% [5] Cross-Border RMB Settlement - In April, the cross-border RMB settlement amount under the current account was 1.51 trillion yuan, with direct investment cross-border RMB settlement amounting to 0.72 trillion yuan [6] Social Financing Scale - As of the end of April, the total social financing scale was 424.0 trillion yuan, growing by 8.7% year-on-year [8] - The balance of RMB loans to the real economy was 262.27 trillion yuan, increasing by 7.1% year-on-year [8] Incremental Social Financing - In the first four months of 2025, the cumulative increase in social financing was 16.34 trillion yuan, which is 3.61 trillion yuan more than the same period last year [11] - The increase in RMB loans to the real economy was 9.78 trillion yuan, which is 339.7 billion yuan more than the previous year [11]

Group 1: Economic Data - In the first quarter, China's RMB loans increased by 9.78 trillion yuan, with a notable credit structure and historically low loan rates supporting the real economy [1][6] - As of the end of March, the total social financing stock in China was 422.96 trillion yuan, growing by 8.4% year-on-year, with a cumulative increase of 15.18 trillion yuan in the first quarter, which is 2.37 trillion yuan more than the same period last year [1][6] - The broad money supply (M2) reached 326.06 trillion yuan, up 7% year-on-year, while the narrow money supply (M1) was 113.49 trillion yuan, increasing by 1.6% [1][6] Group 2: Corporate Announcements - China Pacific Insurance expects a net profit of 11.652 billion to 13.445 billion yuan in the first quarter, representing a year-on-year growth of 30% to 50% [4] - Jiangling Motors plans to repurchase A-shares worth 150 million to 200 million yuan [4] - Infinitus intends to repurchase A-shares valued at 50 million to 100 million yuan [4] - Zhenyu Technology forecasts a net profit of 255 million yuan for 2024, marking a year-on-year increase of 495.9% [4] Group 3: Trade and Transportation - In the first quarter, China's national railways transported 970 million tons of goods, a year-on-year increase of 3.1%, with an average of 179,000 cars loaded daily, up 4.2% [1][6] - The China Railway Chengdu Bureau Group announced the launch of a regular freight train service from Chengdu to Central Asia, which will run weekly starting April 13 [1][6]