The "migration effect" continues, with non-banking financial institutions increasing their deposits by over 2 trillion yuan in July.

The latest data shows that in July, RMB deposits increased by 500 billion yuan, an increase of 1.3 trillion yuan compared to the same period last year. Among them, household deposits decreased by 1.11 trillion yuan, a decrease of 780 billion yuan compared to the same period last year; deposits of non-bank financial institutions increased significantly by 2.14 trillion yuan, an increase of 1.39 trillion yuan compared to the same period last year. This significant increase in the numbers largely reflects the "migration" of household funds, with the main driving factor being the significant increase in risk appetite of residents in the current stock market trend. A macro analysis analyst at a private equity fund stated that when residents transfer funds to securities accounts through bank transfers, it will result in a decrease in bank deposits and an increase in deposits in non-bank financial institutions; purchasing funds, wealth management products, etc. will also increase deposits in non-bank financial institutions. In other words, the 2.14 trillion yuan can be seen as household deposits directly or indirectly entering the capital market. This flow of funds confirms the continued upward trend of A-shares in July.