Zhongjin: Weak financing demand, follow fiscal changes

On August 14th, Jin10 Data reported that the growth rate of social financing in July rebounded slightly, while financing data was generally weak. According to our calculations, the impact of cracking down on idle funds has had a certain impact on financing data, but the impact of insufficient financing demand cannot be ignored. The rebound in M2 growth rate may be due to the return of financial products, and our calculated M2-like growth rate has slowed down. The Interest Rate of formal financing channels continues to decline, but the Interest Rate of private lending may not have changed significantly, and the risk premium is still high. The behavior of bill issuance may reappear, but its sustainability remains to be seen. In the short term, maintaining stable social financing and boosting total demand is more effective in terms of finance, and there have been positive changes in recent times, but more efforts are needed.