The People's Bank of China released financial statistics for July on August 13. A series of financial policies have been implemented and proven effective, promoting stable growth in total credit volume and continuous optimization of structure. What are the main areas to which credit funds flow? How to understand the main data changes? The financial statistics released by the People's Bank of China on the same day show that the balance of RMB loans in China was 268.51 trillion yuan at the end of July, up 6.9% year on year; The stock of social financing scale is 431.26 trillion yuan, a year-on-year increase of 9%; The balance of broad money (M2) was 329.94 trillion yuan, a year-on-year increase of 8.8%. July has always been a "small month" for loan disbursement, with a significant credit surge at the end of the banking season in June. When combined with loan data from June and July, credit growth remained stable. Since the beginning of this year, bond financing has grown significantly, driving the sustained and rapid growth of social financing scale. In the first seven months, the increase in social financing scale was 5.12 trillion yuan more than the same period last year, with outstanding performance in government bond data, with a net financing of 4.88 trillion yuan more than the same period last year. Through bond swaps, a large amount of implicit debt previously held by local governments in the form of high interest short-term loans has been transformed into low interest long-term bonds, which has a certain impact on loan data. ”Dong Qingma, Vice Dean of the China Institute of Finance at Southwest University of Finance and Economics, stated that local debt swaps can help clear risks and promote financial stability, mobilize more local financial resources to benefit people's livelihoods and promote development, and also facilitate the release of more credit resources to the real economy. The money supply is the stock of money in the entire society, and its changes reflect economic vitality. At the end of July, the balance of narrow money (M1) increased by 5.6% year-on-year, and the "scissors gap" between M1 and M2 narrowed significantly compared to the high point in September last year. Dong Qingma stated that since the beginning of this year, the "scissors gap" between M1 and M2 has shown a narrowing trend, reflecting the improvement of capital activity and circulation efficiency. Various policies to stabilize the market and expectations have effectively boosted market confidence and helped the economy continue to recover and improve. Continuing to optimize the credit structure, analyzing changes in credit should not only focus on the growth of "quantity", but also pay attention to changes in "quality". Data shows that in the first seven months, loans to state-owned enterprises (institutions) in China increased by 11.63 trillion yuan, with enterprises still being the main source of new loans. Among them, medium and long-term loans increased by 6.91 trillion yuan, accounting for nearly 60%. Specifically, in which areas does the "live water" of finance flow? A set of data may provide an answer. At the end of July, the balance of inclusive small and micro loans was 35.05 trillion yuan, a year-on-year increase of 11.8%; The balance of medium and long-term loans in the manufacturing industry was 14.79 trillion yuan, a year-on-year increase of 8.5%, both higher than the growth rate of various loans during the same period. The transformation and upgrading of economic structure promote corresponding adjustments in credit structure, requiring higher quality credit allocation. ”Professor Hou Chengqi from the School of Economics at Beijing Institute of Technology stated that since the beginning of this year, the policy arrangements for the "five major articles" in finance have been continuously improved, the statistical system has been further clarified, the driving role of structural monetary policy tools has continued to strengthen, and the ability and willingness of financial institutions to support key areas and weak links have been continuously enhanced, and the effects have also continued to show. Since the beginning of this year, the People's Bank of China has continued to improve its monetary policy toolbox, and rectified capital idling and "involution" competition in the financial industry. Industry insiders believe that breaking the "internal competition" of financial institutions will squeeze out inflated idle loans, promoting higher quality, efficiency, and sustainability of financial support for the real economy. With the transformation and upgrading of China's economic structure, new driving forces such as green development and technological innovation are accelerating, and financial institutions will further explore effective credit demand in segmented markets. Since the beginning of this year, China's loan interest rates have remained at historically low levels, making it more cost-effective for capital demanders to obtain bank credit support. The reporter learned from the People's Bank of China that in July, the interest rate of newly issued corporate loans was about 3.2%, and the interest rate of newly issued personal housing loans was about 3.1%, down about 45 and 30 basis points respectively from the same period last year. The current loan interest rate is only half of what it used to be, which greatly helps alleviate our financial pressure and enables us to launch new production lines and better explore the market. ”The head of a manufacturing company told reporters. The decrease in comprehensive financing costs reflects a suitable monetary and credit environment. Interest rates are price signals of the supply and demand relationship of funds, and maintaining low interest rates reflects relatively abundant credit supply. ”Zhang Xu, Chief Fixed Income Analyst at Everbright Securities, said that loan interest rates have been running at a low level for a long time, reflecting a relatively high level of satisfaction with the financing needs of the real economy. In September last year, the People's Bank of China launched a pilot project to show the comprehensive financing cost of enterprise loans in five provinces. More transparent financing costs for enterprises can help further reduce their financing burden. Experts say that macroeconomic policies will maintain continuity and stability in the second half of the year, and the domestic economic cycle is expected to be smoother. A package of financial measures will continue to be implemented, which is conducive to promoting sustained economic recovery and reasonable growth in effective credit demand. (New Society)