According to the CITIC Securities Research Report, total financial data readings declined markedly in June, but base disturbances were the main cause, and positive signals at the structural level are still accumulating. In terms of social finance, government bonds declined sharply under the high base of centralized issuance in the same period last year, dragging down stock growth to 7.4%. Corporate bonds and equity financing continued to increase, and the supplementary characteristics of direct financing were strengthened. On the credit side, impulse intensity weakened at the end of the quarter, medium- and long-term corporate loans continued to increase less year on year, strong exports supported high investment in short- and long-term loans, and residential loans corrected in a single month, but there was still little increase over the same period last year. On the monetary side, the M1 and M2 growth rates both declined due to the high base. After excluding the base, the trend of improving capital activation remained unchanged. The low increase in residents' deposits coexisted with the increase in non-bank deposits in the first half of the year, and the “deposit moving” pattern continued. We believe that government debt's support for social finance slowed in the second half of the year, and the growth rate may continue to decline. Credit easing depends on continuing to strengthen domestic demand policies; we are concerned about deposit revitalization and the continuation of positive feedback on capital market activity.

According to the CITIC Securities Research Report, total financial data readings declined markedly in June, but base disturbances were the main cause, and positive signals at the structural level are still accumulating. In terms of social finance, government bonds declined sharply under the high base of centralized issuance in the same period last year, dragging down stock growth to 7.4%. Corporate bonds and equity financing continued to increase, and the supplementary characteristics of direct financing were strengthened. On the credit side, impulse intensity weakened at the end of the quarter, medium- and long-term corporate loans continued to increase less year on year, strong exports supported high investment in short- and long-term loans, and residential loans corrected in a single month, but there was still little increase over the same period last year. On the monetary side, the M1 and M2 growth rates both declined due to the high base. After excluding the base, the trend of improving capital activation remained unchanged. The low increase in residents' deposits coexisted with the increase in non-bank deposits in the first half of the year, and the “deposit moving” pattern continued. We believe that government debt's support for social finance slowed in the second half of the year, and the growth rate may continue to decline. Credit easing depends on continuing to strengthen domestic demand policies; we are concerned about deposit revitalization and the continuation of positive feedback on capital market activity.