Core Viewpoint - The rebound in M2 year-on-year is primarily driven by the active capital market, which has accelerated the return of funds, leading to a record high in non-bank deposits for the same period since 2015, with an increase of 21,400 billion yuan, a year-on-year increase of 13,900 billion yuan [3][9][48]. Financial Data Summary - As of July 2025, the credit balance decreased by 0.2 percentage points year-on-year to 6.9%, while the social financing stock increased by 0.1 percentage points to 9.0%, and M2 rose by 0.5 percentage points to 8.8% [2][8][47]. - The increase in social financing scale is mainly attributed to net government bond financing, with a year-on-year increase of 5.1 trillion yuan from January to July 2025, of which net government bond financing contributed 4.9 trillion yuan [4][24][49]. - In July, the total social financing increased by 11,600 billion yuan, a year-on-year increase of 3,893 billion yuan, primarily driven by government bonds [33][50]. Loan and Deposit Trends - Resident loans saw a significant decline, decreasing by 4,893 billion yuan, a year-on-year reduction of 2,793 billion yuan, reflecting a cautious attitude towards debt amid an unstable job market [14][15][48]. - The structure of deposits showed a decrease in resident deposits by 11,100 billion yuan and corporate deposits by 14,591 billion yuan, while fiscal deposits increased by 7,700 billion yuan [39][51]. - Corporate credit displayed a mixed trend, with short-term loans and bill financing performing well, while medium- to long-term loans remained weak, indicating a cautious stance on long-term investments [19][49]. Policy Outlook - The introduction of loan interest subsidy policies aims to lower the comprehensive financing costs and stimulate credit growth, with a subsidy rate of 1 percentage point for consumer loans and service industry loans [26][49].