1. Report Industry Investment Rating No relevant content provided in the report. 2. Core Viewpoints of the Report - The February excess reserve ratio rose 0.1 pct to 1.2% compared to January, in line with expectations. The government deposit decreased by 616.5 billion yuan in February, more than expected, partly due to additional local treasury cash fixed - term deposits. The 3 - month excess reserve ratio is expected to reach 1.4%, up 0.2 pct from February, and the overall pattern of abundant liquidity is likely to continue [3][4][11]. - The year - on - year growth rate of M2 in February was 9.0%, the same as in January, slightly lower than expected. It is expected to decline further in March due to the reduced pull of bank net lending on M2 [5][22]. - In February, deposits flowed from small and medium - sized banks to large banks. However, this trend may reverse in March, which may be the reason for the recent increase in the allocation power of small and medium - sized banks [5][26]. 3. Summary by Relevant Catalogs 2.1 2 - month excess reserve ratio回升至1.2%, cash return and fiscal expenditure are expected to support the 3 - month excess reserve - The February excess reserve ratio rose 0.1 pct to 1.2% compared to January. The government deposit decreased by 616.5 billion yuan, more than expected, affected by additional local treasury cash fixed - term deposits. The remaining part needs to wait for fiscal data to determine whether it is due to increased fiscal spending or accelerated use of replacement bonds [3][11]. - The cash leakage in February was lower than expected, but the non - financial institution deposits of the central bank increased, which may reflect the rise of payment institution reserves during the Spring Festival, and the two effects basically offset each other [3][11]. - Although the decline in credit and the increase in non - bank deposits in February reduced the consumption of reserve requirements, the central bank's claims on other financial companies decreased by only 30 billion yuan, which may be due to the decline in the central bank's re - loans to margin trading companies, dragging down liquidity [3][11]. - Other items such as the central bank's claims on other depository companies and foreign exchange holdings were in line with expectations. It is expected that in March, the cash return will reach 1.02 trillion yuan, the government deposit will decrease by 830 billion yuan, and the excess reserve ratio is expected to reach 1.4%, up 0.2 pct from February [4][18]. 2.2 2 - month M2 is slightly lower than expected, and it is expected to decline further in March - The year - on - year growth rate of M2 in February was 9.0%, the same as in January, slightly lower than the expected 9.2%. Although fiscal deposits and equity and other investments contributed 0.2 pct more to M2 than expected, factors such as weak consumer demand, improved non - bank sentiment affecting bond investment, and the stability of the RMB exchange rate restricting the expansion of foreign net assets led to a shortfall of about 800 billion yuan compared to expectations. Considering the increase in the base of bank net lending, the growth rate of M2 is expected to decline in March [5][22]. 2.3 2 - month deposits flowed to large banks, pay attention to the reversal in March - After excluding non - bank deposits, in February, the deposits of large banks increased by about 47 billion yuan month - on - month, while those of small and medium - sized banks decreased by about 39 billion yuan, showing a trend of deposits flowing from small and medium - sized banks to large banks, which is also reflected in the structural changes of reserve deposits [5][26]. - The central bank's policy tools were more inclined to small and medium - sized banks in February, relieving their liability pressure. The abundant liquidity of large banks supported the expansion of their bond investment scale, while the growth rate of small and medium - sized banks declined. The credit growth rates of both large and small and medium - sized banks declined, indicating weak demand [26]. - Historically, large - bank deposits usually rise rapidly before the Spring Festival, and small and medium - sized bank deposits increase after the Spring Festival. This pattern may continue in March, which may be the reason for the recent increase in the allocation power of small and medium - sized banks [26].