Investment Rating - Industry Rating: Outperform the market (maintained rating) [6] Core Insights - March saw a significant increase in RMB loans, with a new addition of 3.64 trillion, a year-on-year increase of 550 billion, indicating strong demand but potential sustainability issues in future credit issuance [3][12] - The government bond issuance continues to drive social financing, with new government bonds amounting to 1.49 trillion in March, a year-on-year increase of 1.02 trillion [4][25] - M2 growth remained stable at 7.0% year-on-year, while M1 growth rebounded, indicating a shift in deposit dynamics [5][28] Summary by Sections 1. Credit Growth and Sustainability - March's credit growth was primarily driven by corporate short-term loans, which increased by 1.44 trillion, marking a historical high for the same period [3][14] - The overall structure of loans remains weak, with a need for policy support to sustain future credit demand [3][17] - The anticipated credit issuance pattern for 2025 is expected to follow a "5221" model, with the first quarter accounting for 52% of the annual total [12][19] 2. Social Financing and Non-Bank Loans - Social financing in March increased by 5.89 trillion, with a year-on-year increase of 1.06 trillion, largely due to government bond issuance [4][25] - Non-bank loans contracted, with a decrease of 1.7 trillion in March, reflecting a shift in lending dynamics [4][25] 3. M2 and M1 Growth - M2 growth was stable at 7.0%, supported by general deposits, while M1 growth showed improvement, indicating a recovery in liquidity [5][28] - The decline in non-bank deposits significantly impacted M2 growth, highlighting the changing landscape of deposit accumulation [28][29]