Financing Overview - In January 2026, the new social financing (社融) increased by 72,200 billion RMB, a year-on-year increase of 1,654 billion RMB[1] - Government bond financing contributed significantly with an increase of 9,764 billion RMB, up 2,831 billion RMB year-on-year, representing 13.5% of total social financing, the highest since 2021[4] - Corporate bond financing added 5,033 billion RMB, a year-on-year increase of 579 billion RMB, but slightly below the three-year average of 3,471 billion RMB[1] Loan Dynamics - Financial institutions issued 47,100 billion RMB in new loans in January 2026, which is 4,200 billion RMB less than the same period last year[2] - Corporate loans accounted for 44,500 billion RMB, down 3,300 billion RMB year-on-year, while household loans increased by 4,565 billion RMB, up 127 billion RMB year-on-year[2] - The total loan balance grew by 6.10% year-on-year, a decrease of 0.3 percentage points from the end of 2025[2] Money Supply Trends - As of January 2026, M1 grew by 4.9% year-on-year, an increase of 1.1 percentage points from the end of 2025[3] - M2 increased by 9.0% year-on-year, up 0.5 percentage points from the end of 2025[3] - Total deposits rose by 80,900 billion RMB, a year-on-year increase of 37,700 billion RMB, with significant contributions from fiscal deposits[3] Economic Signals - The increase in M1 and M2 indicates a strong liquidity supply and a positive signal for economic activity and capital market performance[4] - The structure of loans is improving, with a notable increase in short-term loans for enterprises, which rose by 20,500 billion RMB, up 3,100 billion RMB year-on-year[6] - The government’s proactive fiscal measures and moderate monetary easing are expected to continue supporting financing structures and economic growth[4]

Group 1: Loan and Deposit Growth - The bank has maintained a good trend in loan issuance in other regions of Jiangsu Province, leveraging its comprehensive institutional layout to enhance market share [1] - As of September 2025, the total deposit balance reached CNY 471.515 billion, an increase of CNY 54.55 billion, representing a growth rate of 13.08% [1][2] Group 2: Asset Quality - As of September 2025, the non-performing loan ratio stood at 0.83%, with a provision coverage ratio of 420.59%, indicating stable asset quality [2] - The bank will continue to optimize credit policies and approval strategies, enhancing monitoring and inspection frequency to prevent and mitigate risks [2] Group 3: Investor Relations and Communication - The investor relations activity involved thorough communication between the company's representatives and investors, adhering to regulations without disclosing any undisclosed significant information [2]

Group 1: Open Market Operations - The central bank conducted a 7-day reverse repurchase operation on December 9, with a fixed rate and a total of 117.3 billion yuan, at an interest rate of 1.40% [1] - On the same day, 156.3 billion yuan of reverse repos matured, resulting in a net withdrawal of 39 billion yuan [1] Group 2: Funding Conditions - The interbank market funding conditions remained stable and slightly eased, with the D R001 weighted average interest rate dropping below 1.3% [3] - Overnight quotes in the anonymous click (X-repo) system were at 1.28%, indicating ample supply [3] - Non-bank institutions' overnight funding quotes for pledged credit bonds remained stable in the range of 1.45%-1.46% [3] - The latest overnight financing rate in the U.S. was reported at 3.93% [3] Group 3: Interbank Certificates of Deposit - The latest transaction rate for one-year interbank certificates of deposit among major banks was stable at 1.66% [7] Group 4: Bond Yield Rates - The yields for various government bonds showed slight decreases, with the 1-year yield at 1.40%, 2-year at 1.325%, 5-year at 1.560%, and 10-year at 1.833% [9] - The 30-year main contract for government bond futures increased by 0.45%, while the 10-year and 5-year contracts rose by 0.12% and 0.07%, respectively [13] Group 5: Recent Developments in the Bond Market - UBS Futures facilitated the first commodity futures transaction using government bonds as margin for qualified foreign institutional investors (QFII) [14] - Predictions indicate that new RMB loans and social financing scale in November will improve compared to the previous month, with government bond financing expected to decline year-on-year [14] - Yunnan Province published a plan to regulate the construction and operation of existing government and social capital cooperation projects, aiming for a comprehensive review by June 2026 [14] Group 6: Global Macro Insights - The Bank of Japan's governor indicated a potential increase in government bond purchases if long-term rates fluctuate significantly, with a possibility of interest rate hikes if economic conditions develop as expected [16] - Moody's chief economist warned that the debt levels of tech companies exceed those during the internet bubble, posing systemic risks [16] - The Reserve Bank of Australia maintained its key interest rate at 3.60%, aligning with market expectations, while assessing inflation trends [16]