Financial Times: Excessive speculation should be avoided on the monthly fluctuation of credit growth.

The Financial Times article pointed out that on August 13, the People's Bank of China released financial data. At the end of July, the scale of social financing and the growth rate of M2 remained at a relatively high level, reflecting a moderately loose monetary policy orientation, providing a suitable monetary and financial environment for the real economy. At the same time, credit data fluctuated significantly due to seasonal factors. Monthly financial data are often seen as a window to observe the cyclical economic and financial situation, but as China's economy enters a stage of high-quality development, monthly loan data alone may not accurately reflect the level of economic activity and the extent of financial support for the real economy. When analyzing the economic and financial situation, there is no need to excessively focus on monthly data, and it is not appropriate to exaggerate the fluctuations in monthly credit increment data. Overall, in the current context where the decision-making layer has repeatedly mentioned "breaking the internal competition," financial institutions must also recognize that exploring effective credit demand is the guarantee for banks to operate stably and sustainably. According to industry observations, under traditional business thinking, some financial institutions still tend to market to such large clients by lowering loan interest rates, resulting in disorderly competition, but such demand can hardly be considered as effective credit demand. With China's economic structural transformation and upgrading, traditional credit demand is decreasing while credit demand in new areas of growth is increasing. Financial institutions in the future need to adapt to the changing situation, accelerate the transformation of their business strategies, further reach out to customers, and explore effective credit demand in segmented markets.