Core Viewpoints - The economic cycle has been continuously improving since September 2024, with the April data showing a persistent improvement in the deposit scissors difference between enterprises and residents [4][21] - Non-bank institutions have seen the highest deposit growth in the past five years, indicating a potential shift in resident deposits and a response to the central bank's efforts to stabilize the market [4][9] - Loan data reveals a structural shift, with an increase in consumer loans for residents and a decrease in operational loans, while enterprises are seeing a rise in short-term loans but a decline in medium- to long-term loans [4][8] Financial Asset Side Observations - April is typically a month of weak credit expansion, with the new social financing scale at 1.16 trillion, which is relatively stable compared to previous years [6][12] - The structure of resident loans is changing, with consumer loans increasing while operational loans are declining, reflecting a shift in demand and potential impacts on household debt and bank income [7][14] - Enterprise loans have shown a strong performance in 2025, with a total of 9.3 trillion in new loans, although the duration of these loans is shortening compared to previous years [8][18] Financial Liability Side Observations - Leading indicators of the economic cycle are improving, with the enterprise-resident deposit scissors difference recovering from -14.7% in August 2024 to -8.4% currently [9][21] - Non-bank institution deposits have increased significantly, with a total of 2.2 trillion in new deposits in the first four months of 2025, indicating strong performance in the equity market [9][23] - The central bank's protective measures in the financial market are evident, with interventions aimed at stabilizing asset prices during market shocks [10][24] April Financial Data Highlights - In April, RMB loans increased by 280 billion, with a total loan balance of 265.7 trillion, reflecting a year-on-year growth of 7.2% [29][31] - The social financing scale increased by 1.16 trillion, with a year-on-year growth of 8.7%, indicating ongoing government debt issuance [31][32] - M2 growth was recorded at 8%, while new M1 growth was at 1.5%, showing a mixed trend in monetary aggregates [32][33]