The People's Bank of China released financial data for July on the 13th, showing that at the end of July, the balance of broad money (M2) was 30.331 trillion yuan (RMB, the same below), a year-on-year increase of 6.3%. The balance of narrow money (M1) was 63.23 trillion yuan, a year-on-year decrease of 6.6%. The balance of circulating currency (M0) was 11.88 trillion yuan, a year-on-year increase of 12%. Net cash investment of 539.6 billion yuan in the first seven months. From a credit perspective, RMB loans increased by 13.53 trillion yuan in the first seven months. Looking at each sector, household loans increased by 1.25 trillion yuan; Loans to enterprises (institutions) increased by 11.13 trillion yuan; Non bank financial institution loans increased by 594.6 billion yuan. In addition, preliminary statistics show that as of the end of July 2024, the stock of social financing in China was 395.72 trillion yuan, a year-on-year increase of 8.2%. Among them, the balance of RMB loans issued to the real economy was 247.85 trillion yuan, a year-on-year increase of 8.3%. Zhou Maohua, a macro researcher in the financial market department of Everbright Bank, said that the loan and social finance data in July were weak relative to the trend level, but could not draw a conclusion that the economic recovery was weakening. When looking at the fluctuations in financial data in recent months, it is not only necessary to consider the weak financing demand of the real economy, but also to take into account factors such as regulating manual interest payments, controlling fund idleness, and financial institutions activating existing loan funds. These aspects are difficult to reflect in loan balances, but in reality, measures can help improve the service quality and efficiency of financial institutions and prevent potential risks. Zhou Maohua bluntly stated that in the past seven months, loans increased by 13.53 trillion yuan, and the year-on-year growth rate of M2 and social financing balance continued to be higher than nominal GDP, reflecting that the current domestic financial support for the real economy is sufficient. Wen Bin, Chief Economist of China Minsheng Bank, stated that after achieving significant results in the financial "squeeze" in the second quarter, in order to promote the achievement of the annual economic and social development goals, countercyclical adjustment policies are expected to be strengthened in a timely manner, maintaining credit expansion at a reasonable and balanced level. In this process, financial institutions should guide the rational growth and balanced allocation of credit while preventing the accumulation and idle of funds, enhance the stability and sustainability of loan growth, and focus on increasing support for new energy fields, activating existing resources, improving the efficiency of fund operation, and promoting the compatibility between credit quality and high-quality development. (New Society)