Group 1 - The core viewpoint of the articles highlights the positive trends in China's financial data, indicating a stable growth in social financing and improvements in credit structure, driven by effective financial policies [1][3] - As of the end of July, the year-on-year growth rates for social financing scale, broad money M2, and RMB loans were 9%, 8.8%, and 6.9% respectively, reflecting enhanced financial support for the real economy [1] - The narrowing of the M1-M2 spread to 3.2 percentage points, down 11 percentage points from the previous year's high, indicates increased liquidity and economic vitality, with more "dormant deposits" being converted into demand deposits [1][2] Group 2 - The growth of M1, which includes cash and demand deposits, has been positively influenced by the acceleration of fiscal spending and the issuance of special bonds, leading to a significant increase in corporate demand deposits [2][3] - The divergence between social financing and loan growth, with social financing growth outpacing loan growth by 2.1 percentage points, is attributed to sustained fiscal policy efforts, including a notable increase in government bond net financing [3] - The issuance of new special bonds reached 2.16 trillion yuan in the first half of the year, a 45% year-on-year increase, with expectations for continued rapid issuance in August and September [3] Group 3 - The diversification of corporate financing channels has made traditional loan metrics less reflective of financial support effectiveness, necessitating a broader analysis using indicators like social financing and M2 [4] - Structural monetary policy tools have been optimized to enhance financial support for key sectors, with significant loan growth observed in technology, green, inclusive, and digital economy sectors [4] - By the end of July, inclusive small and micro loans reached 35.05 trillion yuan, growing 11.8% year-on-year, while medium to long-term loans in the manufacturing sector totaled 14.79 trillion yuan, up 8.5% year-on-year [4] Group 4 - Recent policies on personal consumption loans and service industry loan interest subsidies aim to strengthen fiscal and financial collaboration, directing more credit to key areas [5] - The interest subsidy policy is expected to lower repayment costs for residents, enhancing consumption capacity and willingness, while also alleviating financial pressure on service industry operators [5] - This initiative is anticipated to stimulate credit demand, expand business operations, and create more job opportunities [5]

Core Insights - The People's Bank of China reported that financial policies have effectively supported stable growth in credit and optimized its structure, enhancing financial support for the real economy [1] Group 1: Financial Statistics - As of the end of July, the total social financing stock was 431.26 trillion yuan, with a year-on-year growth of 9.0% [1] - The broad money supply (M2) reached 329.94 trillion yuan, growing by 8.8% year-on-year [1] - The balance of RMB loans was 264.79 trillion yuan, reflecting a year-on-year increase of 6.8% [1][2] Group 2: Loan Structure - The balance of various RMB loans stood at 268.51 trillion yuan, with a year-on-year growth of 6.9% [2] - Inclusive small and micro loans amounted to 35.05 trillion yuan, showing a year-on-year increase of 11.8% [2] - Medium to long-term loans in the manufacturing sector reached 14.79 trillion yuan, with a year-on-year growth of 8.5% [2] Group 3: Market Confidence - The narrowing gap between M1 and M2 indicates improved liquidity and efficiency in fund circulation, reflecting effective market stabilization policies [1]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - On May 15, 2025, the central bank announced the financial statistics for April 2025. M2 increased by 8.00% year - on - year, M1 increased by 1.50% year - on - year. The stock of social financing scale at the end of April 2025 increased by 8.7% year - on - year, and the cumulative increase in social financing scale in the first four months was 16.34 trillion yuan, 3.61 trillion yuan more than the same period last year [1][12]. - The accelerated implementation of existing fiscal policies and government financing supported the growth of April's social financing data. The year - on - year growth rate of social financing in April was 8.70%, and the initial value of new social financing was 115.85 billion yuan. Government bond net financing in April was 97.62 billion yuan, 106.99 billion yuan more than the same period last year [2][13]. - The low base and capital re - flow drove the rebound of M2 growth. At the end of April, the year - on - year growth rate of M2 rebounded by 1.0 percentage point compared with the previous value. The year - on - year growth rate of M1 was 0.1 percentage point lower than the previous value, indicating weak corporate investment willingness [3][23]. 3. Summary According to Relevant Catalogs 3.1 Government Financing Supports the Stable Growth of Social Financing - The implementation of existing fiscal policies accelerated, and government financing supported the significant rebound of April's social financing data. The year - on - year growth rate of social financing in April was 8.70%, up 0.3 percentage points from the previous value. The initial value of new social financing was 115.85 billion yuan, 135.72 billion yuan more than the same period last year. Government bond net financing in April was 97.62 billion yuan, 106.99 billion yuan more than the same period last year [13]. - Credit in the social financing caliber in April was weak. New RMB loans were 8.44 billion yuan, 24.65 billion yuan less than the same period last year. Direct financing: corporate bond net financing increased by 23.4 billion yuan in April, 6.33 billion yuan more than the same period last year; non - financial enterprise domestic stock financing was 3.92 billion yuan, 2.06 billion yuan more than the same period last year. Non - standard financing: new non - standard financing decreased by 28.73 billion yuan in April, 13.86 billion yuan less than the same period last year [13]. - New RMB loans in the financial institution caliber in April were 28 billion yuan, 45 billion yuan less than the same period last year. Corporate department: corporate loans increased by 61 billion yuan, 25 billion yuan less than the same period last year. Resident department: resident loans decreased by 52.16 billion yuan, 5 billion yuan more than the same period last year [2][14]. 3.2 Low Base and Capital Re - flow Drive the Rebound of M2 Growth - At the end of April, M2 increased by 8.00% year - on - year, up 1.0 percentage point from the previous value. The low base caused by the rectification of "manual interest compensation" and "squeezing water" in financial data last year, combined with the acceleration of deposit creation by government financing and the reduction of capital re - flow to wealth management products, pushed up the year - on - year growth rate of M2. M1 increased by 1.50% year - on - year, 0.1 percentage point lower than the previous value, indicating that corporate investment willingness needs to be improved. The M1 - M2 gap was negative, and the absolute value widened to 6.50 pct [23]. - In terms of deposit structure, non - bank deposits increased significantly year - on - year. Household deposits decreased by 139 billion yuan in April, 46 billion yuan less than the same period last year; non - financial enterprise deposits decreased by 132.97 billion yuan, 54.28 billion yuan less than the same period last year; non - banking financial institution deposits increased by 157.1 billion yuan, 190.1 billion yuan more than the same period last year; fiscal deposits increased by 37.1 billion yuan, 27.29 billion yuan more than the same period last year [3][23]. 3.3 Investment Advice - Credit supply needs to pick up. The social financing data in April verified the policy effect of the front - loaded fiscal policy. Government bonds became the core source of increment, and the credit structure may reflect the strengthened support for key areas of the real economy. Although the credit growth rate may be disturbed by debt replacement in the short term, the supporting role of finance in the economy will continue to appear under the synergistic effect of policies [4][30]. - April is a traditional "low - credit month", and combined with the uncertainty of foreign trade, credit demand may be under pressure in the short term. However, a package of financial policies introduced in May is expected to boost confidence. In the future, attention should be paid to the issuance rhythm of special treasury bonds and the marginal impact of changes in the foreign trade environment on the demand side. The central bank's monetary policy focus has shifted from "responding to shocks" to "structural breakthroughs" [4][30]. - There is adjustment pressure in the short - term bond market, and the yield curve of bonds becomes steeper. It is recommended that investors grasp the rhythm, trading accounts increase positions on adjustments, and allocation accounts pay attention to the opportunity to intervene when the supply of local bonds increases [4][30].