Core Viewpoint - The banking industry is experiencing stable growth in credit, with a significant portion directed towards corporate loans, indicating strong support for the real economy amidst external pressures and interest margin constraints [1][4]. Credit Growth and Structure - In the first half of 2025, total credit in China increased by 12.92 trillion yuan, with corporate loans accounting for 89.5% of new loans, reflecting a 6.6 percentage point increase from the previous year [1]. - The growth in medium to long-term loans for the manufacturing sector was 8.7% year-on-year, while infrastructure loans grew by 7.4%, indicating a focus on effective investment and high-quality development [2][5]. - The banking sector is expected to continue optimizing its credit structure, with new loans increasingly directed towards innovative and strategic industries, contributing to sustained asset growth [3]. Support for the Real Economy - Corporate loans are highlighted as a stabilizing force for the banking sector, with a significant increase in medium to long-term loans supporting the real economy [4]. - The emphasis on inclusive finance has led banks to enhance support for small and micro enterprises, addressing their financing challenges through various measures [5]. Non-Interest Income Opportunities - The banking sector is facing a long-standing trend of strong corporate credit and weaker retail credit, prompting banks to seek differentiated advantages in service offerings [6][7]. - Despite competitive pressures and potential profit challenges, there are positive indicators for non-interest income growth, particularly in wealth management and investment services [7]. Future Outlook - The outlook for non-performing loans (NPLs) remains optimistic, with expectations of low growth rates for NPL balances compared to overall loan growth, supported by improved repayment capabilities and enhanced risk management practices [8].