Group 1: Report's Investment Rating - Not provided in the content Group 2: Core Viewpoints of the Report - In February, the overall credit and social financing were stable. The increase in corporate loans might be related to the accelerated fiscal expenditure. The follow - up fiscal expenditure acceleration needs further observation. The widening gap between deposit and loan growth rates supports banks to increase bond allocation and inter - bank lending, creating a loose liquidity environment and stabilizing the interest rate ceiling. It is expected that by mid - year, the 10 - year Treasury bond yield may drop to 1.6% - 1.7% [1][4] Group 3: Summary by Related Catalogs Credit and Social Financing Situation - In February, credit was slightly less than the same period last year, and social financing was slightly more, both in line with expectations. The corporate medium - and long - term loans increased by 350 billion yuan year - on - year to 890 billion yuan. The increase in corporate loans might be related to the accelerated fiscal expenditure [1][7] - In February, the new credit was 900 billion yuan, a year - on - year decrease of 110 billion yuan. Corporate credit increased by 1490 billion yuan, a year - on - year increase of 450 billion yuan, mainly due to the 350 - billion - yuan year - on - year increase in corporate medium - and long - term loans. The new social financing was 2.38 trillion yuan, a year - on - year increase of 146.1 billion yuan, and the stock of social financing increased by 8.2% year - on - year, with the growth rate remaining the same as the previous month. The new government bonds in February were 1.4 trillion yuan, with a slightly slower year - on - year growth, but the overall rhythm was similar to last year. In the first half of 2026, the social financing growth rate may show a gentle downward trend [2][10] M1 and M2 Growth Rates - In February 2026, the year - on - year growth rate of M1 rose by 1 percentage point to 5.9%, which might be related to the increase in corporate credit and corporate foreign exchange settlement and sales. The growth rate of M2 was the same as the previous value, with a year - on - year growth of 9.0%. The stable M2 growth rate was mainly due to the continuous growth of household deposits [3][16] Deposit and Loan Growth Rate Gap - In February, the new deposits were 1.17 trillion yuan, a year - on - year decrease of 3.25 trillion yuan, including a 1.6 - trillion - yuan year - on - year decrease in fiscal deposits. Combining January and February, deposits still increased by 520 billion yuan year - on - year. The year - on - year growth rate of deposits at the end of February was 8.7%, the same as at the end of December last year. After excluding fiscal deposits, the growth rate of other deposits increased. The combined loans from January to February were 530 billion yuan less than the same period last year, and the year - on - year growth rate slowed down from 6.4% in December last year to 6.0% in February. The widening gap between deposit and loan growth rates led to an increase in the bank's asset gap, and banks needed to allocate bonds and conduct fund lending to make up for the gap [3][19]