CITIC Securities: It is expected that the preferential interest rate policy for personal consumer loans and service industry loans will work in conjunction with previous measures to boost credit from both the demand and supply sides.

CITIC Securities pointed out that in terms of social financing, the low base combined with the accelerated issuance of government bonds continue to drive up the growth rate of social financing in July. Considering the requirement of the political bureau meeting in July to "accelerate the issuance and use of government bonds," the issuance of special bonds in the third quarter may maintain a relatively fast pace. As for credit, the seasonal decline in credit data under the central bank's calculation. The financing demand from the corporate end has not significantly improved yet, combined with the replacement effect of the concentration of short-term loans to the public at the end of June, amplifying the decline in July, and a seasonal rebound is expected in August. After a concentrated increase in lending at the end of the first half of the year, overall lending to residents has declined, which is also validated by real estate sales data. Looking ahead, the preferential policies for personal consumption loans and service industry loans are expected to work in conjunction with previous comprehensive measures to boost credit from both demand and supply sides. In terms of deposits, the growth rates of M1 and M2 are both increasing, with last year's suspension of manual interest on current accounts leading to a significant decline in corporate demand deposits, the low base continues to support the upward trend in M1 growth in July, and the base effect will continue to provide support in the future.