Economic data released during this period show that China's macroeconomic economy has begun to recover to a certain extent, but the strength of economic recovery still needs to be improved. The economy showed steady growth in July, but we saw the main financial data, including the scissor gap between M1 and M2 widening. M2 rose about 6% year on year, while M1 fell about 6% year on year. The existence of a scissor gap has worried many investors. The number of fixed term deposits has increased. This also reflects the lack of investor confidence and the mentality of many consumers making preventative savings.
We see that in terms of the scale of social financing, the stock of social financing at the end of July was 395.72 trillion yuan, an increase of 8.2% over the previous year. Meanwhile, the growth rate of loans has declined to a certain extent, and residents' deposits have risen quite sharply. In fact, residential loans are mainly mortgage loans, which means that current transactions in the real estate market are still relatively sluggish. Mortgage loans are growing slowly, and some investors who previously bought homes have repaid their loans early, so there has been a decline in the growth rate of residential loans, but the increase in deposits is still quite obvious.
RMB loans increased by 13.53 trillion yuan in the first seven months. In part, housing loans increased by 1.25 trillion yuan. In terms of deposits, the RMB deposit balance at the end of July was 294.92 trillion yuan, up 6.3% year on year. RMB deposits increased 10.66 trillion yuan in the first seven months, of which household deposits increased 8.94 trillion yuan, close to 9 trillion yuan. This shows that even though interest on bank deposits is very...