Credit and Financing - In July, the social financing scale increased by 1.2 trillion RMB, lower than the expected 1.4 trillion RMB and significantly down from the previous value of 4.2 trillion RMB[2] - RMB loans saw a negative growth of 50 billion RMB, against an expectation of -15 billion RMB and a previous increase of 2.24 trillion RMB[2] - New corporate loans in July were 60 billion RMB, a year-on-year decrease of 70 billion RMB[4] Consumer and Corporate Lending - In July, household loans decreased by 489.3 billion RMB, a year-on-year reduction of 279.3 billion RMB[3] - The implementation of the personal consumption loan subsidy policy in September is expected to boost household leverage willingness[3] - Corporate medium and long-term loans decreased by 390 billion RMB year-on-year, indicating a seasonal decline in corporate credit[4] Monetary Supply and Market Trends - M2 growth rate increased to 8.8%, while M1 growth rate rose to 5.6% in July[6] - Non-bank deposits saw a significant increase of 1.39 trillion RMB year-on-year, contributing to the rise in M2[6] - The stock market's performance in July led to a notable shift of household deposits towards non-bank deposits, indicating a potential trend continuation[6] Government Bonds and Financing - In July, new government bond financing amounted to 1.244 trillion RMB, a year-on-year increase of 555.9 billion RMB, contributing positively to social financing[5] - The issuance of special government bonds is expected to maintain strength into August, with a gradual slowdown anticipated in September[5] Economic Outlook and Risks - The financial data for July reflects seasonal volatility, with credit and social financing showing a "temperature difference" that requires careful observation[7] - Risks include potential underperformance of policy execution and unexpected economic downturns[7]