Core Insights - As of the end of July, the broad money supply (M2) in China reached 329.94 trillion yuan, reflecting a year-on-year growth of 8.8% [1] - The narrow money supply (M1) stood at 111.06 trillion yuan, with a year-on-year increase of 5.6% [1] - The difference in growth rates between M2 and M1 has narrowed to 3.2%, a significant decrease from the peak observed in September of the previous year [1] Money Supply Analysis - M1 primarily includes cash, corporate and individual demand deposits, as well as readily available funds in platforms like Alipay and WeChat Wallet [1] - The People's Bank of China (PBOC) adopted a revised statistical approach for M1 starting January this year, which shows a comparable M1 growth rate of -3.3% as of September 2024 [1] - The M2 growth rate was recorded at 6.8% in September, with a notable difference of 10.1% from M1 [1] Market Confidence and Economic Activity - Experts indicate that the narrowing gap between M2 and M1 reflects an increase in the liquidity of funds and improved circulation efficiency [1] - The effectiveness of various policies aimed at stabilizing the market and expectations has positively influenced market confidence, aligning with the trend of recovering economic activity [1]

Group 1 - The People's Bank of China reported an increase of 12.87 trillion yuan in RMB loans for the first seven months of the year [1] - Household loans increased by 680.7 billion yuan, with short-term loans decreasing by 383 billion yuan and medium to long-term loans increasing by 1.06 trillion yuan [1] - Corporate loans rose by 11.63 trillion yuan, with short-term loans increasing by 3.75 trillion yuan and medium to long-term loans increasing by 6.91 trillion yuan, along with an increase of 824.7 billion yuan in bill financing [1] Group 2 - As of the end of July, the broad money supply (M2) stood at 329.94 trillion yuan, reflecting a year-on-year growth of 8.8% [1] - The narrow money supply (M1) was 111.06 trillion yuan, with a year-on-year increase of 5.6% [1] - The currency in circulation (M0) reached 13.28 trillion yuan, showing a year-on-year growth of 11.8% [1] Group 3 - The net cash injection for the first seven months was 465.1 billion yuan [1] - Preliminary statistics indicated that by the end of July 2025, the total social financing scale was 431.26 trillion yuan, with a year-on-year growth of 9% [1] - The cumulative increase in social financing for the first seven months was 23.99 trillion yuan, which is 5.12 trillion yuan more than the same period last year [1]

Group 1 - The latest data from the central bank shows that as of the end of July, the broad money supply (M2) reached 329.94 trillion yuan, with a year-on-year growth of 8.8%, while the narrow money supply (M1) was 111.06 trillion yuan, growing by 5.6% [1] - The difference in growth rates between M2 and M1 has narrowed significantly compared to the peak in September of the previous year, indicating an improvement in the liquidity of funds and the efficiency of circulation [1] - Experts suggest that the narrowing of the M2-M1 gap reflects effective market stabilization policies that have boosted market confidence, aligning with the trend of economic activity recovery [1] Group 2 - M1 primarily represents the operating funds of enterprises, with large enterprises typically having strong financing capabilities and focusing on the efficiency and profitability of fund usage, while small and medium-sized enterprises tend to reserve more working capital to cope with uncertainties [2] - The competition in certain sectors has led to large enterprises delaying payments to small and medium-sized enterprises, which affects the liquidity of these smaller firms and consequently impacts M1 growth [2]

Monetary Supply - As of the end of July, the broad money (M2) balance reached 329.94 trillion yuan, with a year-on-year growth of 8.8% [1] - The narrow money (M1) balance was 111.06 trillion yuan, growing by 5.6% year-on-year [1] - The currency in circulation (M0) stood at 13.28 trillion yuan, reflecting an 11.8% year-on-year increase [1] - A net cash injection of 465.1 billion yuan occurred in the first seven months [1] Renminbi Loans - By the end of July, the balance of Renminbi loans was 268.51 trillion yuan, with a year-on-year growth of 6.9% [1] - In the first seven months, Renminbi loans increased by 12.87 trillion yuan [1] - Household loans rose by 680.7 billion yuan, with short-term loans decreasing by 383 billion yuan and medium to long-term loans increasing by 1.06 trillion yuan [1] - Corporate loans increased by 11.63 trillion yuan, with short-term loans up by 3.75 trillion yuan and medium to long-term loans up by 6.91 trillion yuan [1] Renminbi Deposits - The balance of Renminbi deposits reached 320.67 trillion yuan by the end of July, showing an 8.7% year-on-year increase [1] - In the first seven months, Renminbi deposits increased by 18.44 trillion yuan [1] - Household deposits rose by 9.66 trillion yuan, while non-financial corporate deposits increased by 310.9 billion yuan [1] Social Financing Scale - As of the end of July, the social financing scale stock was 431.26 trillion yuan, with a year-on-year growth of 9% [2] - The balance of Renminbi loans to the real economy was 264.79 trillion yuan, growing by 6.8% year-on-year [2] - The balance of foreign currency loans to the real economy, converted to Renminbi, was 12.1 billion yuan, showing a year-on-year decline of 23.2% [2] Social Financing Increment - The cumulative social financing increment for the first seven months was 23.99 trillion yuan, which is 5.12 trillion yuan more than the same period last year [3] - The increase in Renminbi loans to the real economy was 12.31 trillion yuan, which is a decrease of 694 billion yuan compared to the previous year [3] - Government bond net financing reached 8.9 trillion yuan, which is an increase of 4.88 trillion yuan year-on-year [3]

Core Viewpoint - The People's Bank of China (PBOC) reported significant increases in social financing, loans, and deposits for the first seven months of 2023, indicating a robust financial environment and potential for economic growth [2][4][6]. Group 1: Social Financing - The cumulative increase in social financing for the first seven months reached 23.99 trillion yuan, which is 5.12 trillion yuan more than the same period last year [4]. - The stock of social financing at the end of July was 431.26 trillion yuan, reflecting a year-on-year growth of 9% [4]. Group 2: Renminbi Loans - Total Renminbi loans increased by 12.87 trillion yuan in the first seven months, with household loans rising by 680.7 billion yuan and corporate loans increasing by 11.63 trillion yuan [6][11]. - The balance of Renminbi loans at the end of July was 268.51 trillion yuan, showing a year-on-year growth of 6.9% [6][11]. Group 3: Renminbi Deposits - Renminbi deposits increased by 18.44 trillion yuan in the first seven months, with household deposits contributing 9.66 trillion yuan [6][13]. - The balance of Renminbi deposits at the end of July was 320.67 trillion yuan, reflecting an 8.7% year-on-year increase [6][13]. Group 4: Monetary Supply - The broad money supply (M2) at the end of July was 329.94 trillion yuan, with a year-on-year growth of 8.8% [9][10]. - The narrow money supply (M1) was 111.06 trillion yuan, growing by 5.6% year-on-year [9][10].

Group 1 - As of the end of July, the total balance of domestic and foreign currency loans reached 272.48 trillion yuan, with a year-on-year growth of 6.7%. The balance of RMB loans was 268.51 trillion yuan, growing by 6.9% year-on-year [3] - In the first seven months, RMB loans increased by 12.87 trillion yuan, with household loans rising by 680.7 billion yuan and corporate loans increasing by 11.63 trillion yuan [3] - The total balance of domestic and foreign currency deposits was 327.83 trillion yuan at the end of July, with a year-on-year growth of 9%. RMB deposits reached 320.67 trillion yuan, growing by 8.7% year-on-year [4] Group 2 - The broad money supply (M2) reached 329.94 trillion yuan at the end of July, with a year-on-year increase of 8.8%. The narrow money supply (M1) was 111.06 trillion yuan, growing by 5.6% [2] - The average weighted interest rate for interbank RMB lending in July was 1.45%, which is lower than the previous month and the same period last year by 0.01 and 0.36 percentage points, respectively [5] - In July, the cross-border RMB settlement amount under the current account was 1.57 trillion yuan, with direct investment cross-border RMB settlement amounting to 0.64 trillion yuan [6]

Group 1 - The broad money supply (M2) increased by 8.8% year-on-year, reaching 329.94 trillion yuan by the end of July [2] - The narrow money supply (M1) grew by 5.6% year-on-year, totaling 111.06 trillion yuan, while the currency in circulation (M0) rose by 11.8% to 13.28 trillion yuan [2] - A net cash injection of 465.1 billion yuan occurred in the first seven months of the year [2] Group 2 - The total RMB loans increased by 12.87 trillion yuan in the first seven months, with the RMB loan balance reaching 268.51 trillion yuan, a year-on-year growth of 6.9% [3] - Household loans increased by 680.7 billion yuan, with short-term loans decreasing by 383 billion yuan and medium to long-term loans increasing by 1.06 trillion yuan [3] - Corporate loans rose by 11.63 trillion yuan, with short-term loans increasing by 3.75 trillion yuan and medium to long-term loans increasing by 6.91 trillion yuan [3] Group 3 - RMB deposits increased by 18.44 trillion yuan in the first seven months, with the total RMB deposit balance reaching 320.67 trillion yuan, a year-on-year growth of 8.7% [4] - Household deposits rose by 9.66 trillion yuan, while non-financial corporate deposits increased by 310.9 billion yuan [4] - Foreign currency deposits reached 1 trillion USD, growing by 20% year-on-year, with an increase of 148.9 billion USD in the first seven months [4] Group 4 - The weighted average interest rate for interbank RMB market lending was 1.45% in July, down 0.01 percentage points from the previous month and 0.36 percentage points from the same period last year [5] - The total transaction volume in the interbank RMB market reached 222.44 trillion yuan in July, with an average daily transaction of 9.67 trillion yuan, reflecting a year-on-year growth of 14.8% [5] - The weighted average interest rate for pledged bond repos was 1.46%, also lower than the previous month and the same period last year [5] Group 5 - The cross-border RMB settlement amount under the current account was 1.57 trillion yuan in July, with goods trade accounting for 1.15 trillion yuan and services trade for 420 billion yuan [6] - The cross-border RMB settlement amount for direct investment was 640 billion yuan, with outbound direct investment at 220 billion yuan and foreign direct investment at 420 billion yuan [6]

Group 1 - As of the end of July, the broad money supply (M2) reached 329.94 trillion yuan, reflecting a year-on-year growth of 8.8% [3] - The narrow money supply (M1) stood at 111.06 trillion yuan, with a year-on-year increase of 5.6% [3] - The currency in circulation (M0) amounted to 13.28 trillion yuan, showing a year-on-year growth of 11.8% [3] - A net cash injection of 465.1 billion yuan occurred in the first seven months [3] Group 2 - By the end of July, the total balance of RMB loans was 268.51 trillion yuan, marking a year-on-year increase of 6.9% [4] - In the first seven months, RMB loans increased by 12.87 trillion yuan [4] - Household loans rose by 680.7 billion yuan, with short-term loans decreasing by 383 billion yuan and medium to long-term loans increasing by 1.06 trillion yuan [4] - Corporate loans increased by 11.63 trillion yuan, with short-term loans up by 3.75 trillion yuan and medium to long-term loans up by 6.91 trillion yuan [4] - Foreign currency loans totaled 555.8 billion USD, down 8.1% year-on-year [4] Group 3 - The total balance of RMB deposits reached 320.67 trillion yuan, reflecting a year-on-year growth of 8.7% [5] - RMB deposits increased by 18.44 trillion yuan in the first seven months [5] - Household deposits rose by 9.66 trillion yuan, while non-financial corporate deposits increased by 310.9 billion yuan [5] - Foreign currency deposits amounted to 1 trillion USD, with a year-on-year increase of 20% [5] Group 4 - In July, the weighted average interest rate for interbank RMB lending was 1.45%, lower by 0.01 percentage points from the previous month [6] - The total transaction volume in the interbank RMB market reached 222.44 trillion yuan, with an average daily transaction of 9.67 trillion yuan, up 14.8% year-on-year [6] - The weighted average interest rate for pledged bond repos was 1.46%, down 0.04 percentage points from the previous month [6] Group 5 - In July, the cross-border RMB settlement amount under the current account was 1.57 trillion yuan [7] - The cross-border RMB settlement for direct investment was 640 billion yuan [7] - The breakdown of the current account settlement included 1.15 trillion yuan for goods trade and 420 billion yuan for service trade [7]

Core Insights - The financial data for May indicates a stable growth in China's financial sector, with a total loan balance of 266.32 trillion yuan, a year-on-year increase of 7.1% [1] - New loans in the first five months reached 10.68 trillion yuan, demonstrating solid support for the real economy [1] - The People's Bank of China (PBOC) implemented a series of financial policies, including interest rate cuts, which have effectively stimulated credit demand [1][2] Loan Distribution - Over 90% of new loans were directed towards enterprises, with corporate loans increasing by 9.8 trillion yuan in the first five months [2] - Medium to long-term loans accounted for more than 60% of the total, amounting to 6.16 trillion yuan, providing stable support for enterprise investment and production [2] - Personal loans also saw significant growth, with household medium to long-term loans increasing by 834.7 billion yuan in the first five months [2] Interest Rate Trends - The average interest rate for newly issued corporate loans was approximately 3.2%, down about 50 basis points year-on-year, while personal housing loans averaged 3.1%, down about 55 basis points [3] - The reduction in interest rates has led to an increase in loan demand from both enterprises and individuals [3] Credit Structure and Financing Channels - The balance of inclusive small and micro loans reached 34.42 trillion yuan, growing by 11.6% year-on-year, while medium to long-term loans in the manufacturing sector increased by 8.8% [3] - The growth in social financing was also supported by a rise in corporate and government bond issuance, with corporate bonds increasing by 3.4% and government bonds by 20.9% [3] Economic Indicators - The narrow money (M1) balance was 108.91 trillion yuan, reflecting a year-on-year growth of 2.3%, indicating a positive economic outlook [4] - The acceleration in the growth of "active money" (M1) suggests a recovery in investment and consumption activities [5] Future Outlook - Experts anticipate stable growth in financial totals, driven by effective financial policies that boost market confidence and support the recovery of effective demand in the real economy [6] - The recent introduction of tools for service consumption and elderly care loans by the PBOC is expected to enhance service consumption supply levels, marking a significant focus for future financial policy support [6]

Group 1: Social Financing Data - In the first five months of 2025, the cumulative increase in social financing was 18.63 trillion yuan, which is 3.83 trillion yuan more than the same period last year [1] - The increase in RMB loans to the real economy was 10.38 trillion yuan, an increase of 112.3 billion yuan year-on-year [1] - The net financing of corporate bonds was 908.7 billion yuan, a decrease of 288.4 billion yuan year-on-year [1] Group 2: Stock Data - As of the end of May 2025, the total social financing stock was 426.16 trillion yuan, a year-on-year increase of 8.7% [2] - The balance of RMB loans to the real economy was 262.86 trillion yuan, a year-on-year increase of 7% [2] - The balance of government bonds was 87.39 trillion yuan, a year-on-year increase of 20.9% [2] Group 3: Loan and Deposit Data - The balance of RMB loans increased by 10.68 trillion yuan in the first five months of 2025, with household loans increasing by 572.4 billion yuan [6] - The balance of RMB deposits increased by 14.73 trillion yuan in the first five months, with household deposits increasing by 8.3 trillion yuan [8] - The balance of foreign currency loans was 539.4 billion USD, a year-on-year decrease of 16.3% [7] Group 4: Monetary Statistics - The balance of broad money (M2) was 325.78 trillion yuan, a year-on-year increase of 7.9% [4] - The balance of narrow money (M1) was 108.91 trillion yuan, a year-on-year increase of 2.3% [5] - The cash in circulation (M0) was 13.13 trillion yuan, a year-on-year increase of 12.1% [5] Group 5: Interbank Market Activity - In May 2025, the average weighted interest rate for interbank RMB market lending was 1.55%, lower than the previous month and the same period last year [10] - The total transaction volume in the interbank RMB market was 167.2 trillion yuan, with an average daily transaction of 8.8 trillion yuan, a year-on-year increase of 14.9% [10] - The average weighted interest rate for pledged bond repurchase was 1.56%, also lower than the previous month and the same period last year [10]