Citic Sec research reports indicate that in May, the newly added RMB loans were 950 billion yuan, which is 4,100 billion yuan less than the same period last year. The central bank's "squeezing water" policy reduced the 'idle' loans. The effects of real estate policy optimization have not yet been transmitted to the financing demand side. In terms of credit structure, the proportion of long-term loans for enterprises is low and the proportion of bill financing is high. The growth rate of social financing in May was 8.4%, which is 0.1 percentage points higher than last month, mainly due to the accelerated issuance of government bonds. The net financing of government bonds in May was 1.22 trillion yuan, which is 668.2 billion yuan more than the same period last year. It is expected that government bonds will continue to support the growth of social financing in the subsequent months. The growth rate of M1 in May was -4.2%, which is 2.8 percentage points lower than last month. Citic Sec believes that this is not due to a significant decrease in the operating activity of enterprises, but rather the result of strict investigation of "manual interest supplementation" causing corporate deposits to flow into wealth management.