Core Viewpoint - The April financial statistics released by the central bank indicate a significant decline in new loans and a mixed performance in monetary aggregates, reflecting ongoing economic challenges and uncertainties in external demand [2][3][6]. Group 1: Loan Data Analysis - In April, new RMB loans amounted to 280 billion, a year-on-year decrease of 450 billion, with a growth rate of 7.2%, marking a decline from the previous month [3][6]. - Corporate loans showed relative stability, with an increase of 610 billion in April, although this was a year-on-year decrease of 250 billion, accounting for 218% of new loans [4]. - Retail loans experienced a seasonal decline, with a total reduction of 521.6 billion, including a significant drop in mortgage and consumer loans [5]. Group 2: Monetary Aggregates - M2 grew by 8% year-on-year, with a 1 percentage point increase from the end of March, while M1's growth rate fell to 1.5%, down 0.1 percentage points [6][8]. - The total social financing in April reached 1.16 trillion, a year-on-year increase of 1.22 trillion, with a growth rate of 8.7%, showing a recovery trend compared to March [7]. - M1 decreased by 4.35 trillion, significantly lower than the average for the same period from 2020 to 2024, indicating a weakening in monetary activity [8].

Financial Data Analysis - In April, the loan data showed a significant decline, with corporate loans remaining stable while retail loans faced seasonal pressure, leading to a social financing growth rate of 8.7%, which further increased compared to March [4] - M1 growth rate unexpectedly decreased, while M2 growth rebounded due to a low base [4] Real Estate Market Insights - From January to April, the core 30 cities saw a cumulative year-on-year increase of 5% in new home transaction prices, with 10 cities experiencing a 2% increase in second-hand home prices [5] - Specific cities reported significant price variations, such as Beijing at 28,927 CNY/sqm (+3.5% YoY) and Guangzhou at 27,170 CNY/sqm (-7.4% YoY) [5] Internet Media Sector Performance - AppLovin's Q1 2025 performance exceeded expectations, with revenue reaching $1.48 billion (up 40% YoY) and net profit at $576 million (up from $236 million in Q1 2024) [6] - The adjusted EBITDA for AppLovin was $1.01 billion, marking an 83% increase year-on-year [6] Company-Specific Developments - Kunlun Energy, under China National Petroleum, is expected to achieve high-quality development in its natural gas terminal business, projecting a net profit of 6 billion CNY for 2024, a 4.9% increase [7] - Jianghuai Automobile reported a revenue decline of 6.3% YoY to 42.12 billion CNY for 2024, with a net loss of 1.78 billion CNY, significantly worsening from a net profit of 150 million CNY in 2023 [8] - Tencent Music's Q1 2025 revenue was 7.36 billion CNY, reflecting an 8.7% YoY increase, with adjusted net profit rising by 22.8% YoY to 2.23 billion CNY [9] User Engagement and Growth - Meitu Company reported a net increase of 3.5 million paid subscription users in 2024, reaching a total of 12.61 million, with a subscription penetration rate of 4.7% [9]

Investment Rating - The report maintains a "Buy" rating for the banking industry, indicating an expected investment return exceeding the market benchmark index by more than 15% over the next 6-12 months [1]. Core Insights - The April financial data reveals a significant divergence in social financing and credit, with new RMB loans at 280 billion, a year-on-year decrease of 450 billion, and a growth rate of 7.2%, down 0.2 percentage points from the end of March. In contrast, the new social financing scale reached 1.16 trillion, an increase of 1.22 trillion year-on-year, with a growth rate of 8.7%, up 0.3 percentage points from March [4][29]. Summary by Sections Loan Data Analysis - In April, new RMB loans totaled 280 billion, reflecting a year-on-year decrease of 450 billion and a growth rate of 7.2%. The decline is attributed to multiple factors, including seasonal influences and external demand uncertainties due to trade frictions. The effective financing demand has not shown substantial recovery, and the pricing of new loans remains at historical lows [4][5]. - The total new RMB loans from January to April amounted to 1.01 trillion, showing a year-on-year stability in demand despite the challenges faced [4]. Social Financing Overview - The new social financing scale in April was 1.16 trillion, with a year-on-year increase of 1.22 trillion and a growth rate of 8.7%. This marks a continued upward trend since the beginning of the year [29][32]. - Government bonds accounted for a significant portion of the new social financing, with 9.76 trillion issued in April, representing 84% of the total new financing, which is notably higher than the average for the same period in previous years [29][32]. Monetary Supply and Demand - In April, M2 growth was recorded at 8%, with M1 growth at 1.5%. The increase in M2 is attributed to a low base effect from the previous year, while M1's decline indicates a weakening in monetary activation [33][34]. - The report highlights a decrease in both resident and corporate deposits, with total RMB deposits down by 440 billion in April, reflecting ongoing challenges in the banking sector [36][39]. Corporate and Retail Loan Trends - Corporate loans showed relative stability, with new loans totaling 610 billion, despite a year-on-year decrease of 250 billion. The report notes that government investment continues to support credit expansion [16][17]. - Retail loans, however, faced seasonal declines, with a total reduction of 521.6 billion in April. The report indicates that mortgage loans are under significant pressure, with a notable decrease in new mortgage issuance [22][23].