The People's Bank of China released the latest financial data on the 14th. What are the highlights of the data released this time? Where does the credit fund mainly flow? How effective is the recent financial policy "combination punch"? Let's take a look at this issue's quick Q&A.

Q: What are the highlights of the latest financial data?

A: First of all, the total financial indicators remain within a reasonable range. The data shows that at the end of September, China's social financing scale was 4021.9 trillion yuan, a year-on-year increase of 8%; the balance of RMB loans was 2536.1 trillion yuan, a year-on-year increase of 8.1%. Affected by multiple factors such as weak effective financing demand, "water squeezing" of financial data, and economic structural transformation, the overall situation remains within a reasonable range.

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Secondly, the growth rate of M2 is stabilizing and rebounding. The data shows that at the end of September, the balance of broad money (M2) was 3094.8 trillion yuan, a year-on-year increase of 6.8%, 0.5 percentage points higher than the end of the previous month, maintaining a stable increase. The recent introduction and implementation of a package of incremental policies have provided clear support for the recovery of market confidence, especially the flow back of financial management funds to deposits, which has supported the growth of the total amount of money. Recently, market expectations have improved, the stock market has rebounded, and the inclusion of securities customer margin in M2 has also driven the rebound of M2.

Finally, financial support for the real economy is more stable and solid. At present, the total amount of finance is generally stable, and the social financing scale has broken through 400 trillion yuan for the first time, providing strong and effective support for the real economy. Experts say that as the package of incremental policies introduced recently gradually takes effect, financial resources will flow more to major strategies, key areas, and weak links in the future, and the financial support for the high-quality development of the real economy will be more sufficient and brighter.

Q: Where does the credit fund mainly flow?

A: With the transformation and upgrading of China's economic structure, the credit structure has also been adjusted accordingly. The overall credit demand in traditional areas such as real estate and local financing platforms has contracted, while new drivers such as green development and technological innovation are accelerating. At the end of September, the balance of medium and long-term loans in the manufacturing industry was 13.88 trillion yuan, a year-on-year increase of 14.8%, of which the balance of medium and long-term loans in high-tech manufacturing industry increased by 12% year-on-year; the balance of loans to specialized, refined, and innovative enterprises was 4.26 trillion yuan, a year-on-year increase of 13.5%; the balance of inclusive small and micro loans was 32.9 trillion yuan, a year-on-year increase of 14.5%. The growth rates of these loans are all higher than the growth rate of all loans during the same period.

Wang Qing, the chief macro analyst of Orient Jincheng, said that with the high-quality development and structural transformation of the economy, the growth of money and credit needed by the real economy has changed. Monetary policy is more focused on key areas and weak links, increasing the revitalization of inefficient existing financial resources, focusing on the financial "five major articles", and continuously optimizing the credit structure.

Zhou Maohua, a researcher at Everbright Bank, said that the central bank has repeatedly stated that maintaining price stability and promoting a moderate rise in prices is an important consideration for grasping monetary policy. It guides financial institutions to scientifically assess risks, restrain the financing supply to industries with excess capacity, and more targetedly meet reasonable consumer financing needs. At the same time, it is necessary to play a policy synergy, deeply implement the consumption-driven strategy, and promote the matching of supply and demand. Overall, against the backdrop of accelerated economic structural adjustment, transformation, and upgrading, and the transformation of old and new drivers, the future exploration of effective domestic demand, especially in promoting the expansion of consumer demand, monetary policy will also work hard with other macro policies to support the dynamic balance of supply and demand in the economy.Answer: Following the recent release of a package of incremental policy measures, the market has responded enthusiastically to the two tools aimed at supporting the stable development of the stock market. At the same time, expectations for the real estate market have improved, and the phenomenon of residents repaying their mortgages in advance has decreased recently. After the announcement of several financial policies supporting the real estate market, such as reducing the interest rates on existing mortgages and unifying the down payment ratio for mortgages, the number of visitors and subscriptions for most first-tier city properties has increased marginally, and the situation of residents repaying their mortgages in advance has been reduced. According to calculations by a branch of a state-owned major bank in Shenzhen, since September 25th, the average daily application volume for early repayment of personal mortgages has decreased by 60% compared to the average level in the first half of September.

Zhao Lian's Chief Researcher Dong Ximiao believes that the adjustment of the real estate market in this round has lasted longer than in the past, with market confidence remaining weak and impacting the operation of the economy. Looking at this year's monetary policy operations, the central bank has focused on promoting consensus among all parties, grasping the key point of the real estate market. In May, it optimized housing credit policies, established re-lending for affordable housing, and promoted the de-stocking of existing commercial housing. In September, it further reduced the interest rates on existing mortgages and the minimum down payment ratio for mortgages, and extended the implementation period of some real estate financial policies. The effects of previous policies are gradually becoming apparent, and the real estate market has had a positive response. The stock market is a barometer of the macroeconomy and a concentrated expression of market confidence. Recently, the central bank has created two structural tools to support the stable development of the stock market. After a series of policies were introduced, the stock index rebounded, effectively boosting market confidence.

Jones Lang LaSalle's Chief Economist for Greater China, Pang Ying, believes that the financial sector has introduced various structural policy measures, promoted the supply-side structural reform of finance, optimized financial services, and substantially increased support for major strategies, key areas, and weak links, which have been positively and positively evaluated by all parties. Structural policies are ultimately aimed at serving the real economy, addressing key bottlenecks in the operation of the real economy, and some policy tools will also promote the smooth circulation of the real economy by reversing the downward spiral feedback in specific markets.

Question: What is the relationship between a supportive monetary policy stance and a prudent monetary policy?

Answer: The supportive monetary policy stance has recently received high attention from the market. Industry insiders have said that global inflation has fallen from a high level this year, but it still has strong stickiness, and the central banks of major developed economies generally maintain high interest rates and restrictive monetary policy stances. In contrast, China's monetary policy stance is supportive, aimed at supporting the economy's continuous recovery and improvement. This is not contradictory to the concept of a prudent monetary policy. Against the backdrop of slowing domestic demand growth, monetary policy increases counter-cyclical adjustments, which can truly reflect the "supportive" effectiveness and promote the stable operation of the economy; if the economic downturn pressure eases, monetary policy will also return to normal. "Loose when appropriate, tight when appropriate," is also a reflection of policy prudence.