






★
Macro
★
01
★★★
Central Bank: M2 Balance at Month-End February Reached 320.52 Trillion Yuan, Up 7% YoY
Data released by the central bank showed that at the end of February, the broad money (M2) balance stood at 320.52 trillion yuan, up 7% YoY. The narrow money (M1) balance was 109.44 trillion yuan, up 0.1% YoY. The currency in circulation (M0) balance was 13.28 trillion yuan, up 9.7% YoY. A net cash injection of 456.2 billion yuan was made in the first two months.
02
★★
Central Bank: Social Financing Scale Increment in the First Two Months of 2025 Totaled 9.29 Trillion Yuan, 1.32 Trillion Yuan More Than the Same Period Last Year
Preliminary statistics released by the central bank showed that the cumulative increment of social financing scale in the first two months of 2025 was 9.29 trillion yuan, 1.32 trillion yuan more than the same period last year. Among them, RMB loans issued to the real economy increased by 5.87 trillion yuan, 54.8 billion yuan more YoY; foreign currency loans issued to the real economy, converted to RMB, decreased by 67.2 billion yuan, 165.2 billion yuan more YoY; entrusted loans increased by 22 billion yuan, 75 billion yuan more YoY; trust loans increased by 29.3 billion yuan, 101 billion yuan less YoY; undiscounted bank acceptance bills increased by 166.8 billion yuan, 28.2 billion yuan less YoY; net corporate bond financing was 615.6 billion yuan, 41.4 billion yuan more YoY; net government bond financing was 2.39 trillion yuan, 1.49 trillion yuan more YoY; domestic stock financing by non-financial enterprises was 54.9 billion yuan, 1.3 billion yuan more YoY.
03
★★
China's New RMB Loans in January-February Reached 6.14 Trillion Yuan, Medium and Long-Term Household Loans Increased by 378.5 Billion Yuan
China's new RMB loans in January-February amounted to 6.14 trillion yuan, compared to an estimate of 6.38 trillion yuan. By sector, household loans increased by 54.7 billion yuan, with short-term loans decreasing by 323.8 billion yuan and medium and long-term loans increasing by 378.5 billion yuan; loans to enterprises and institutions increased by 5.82 trillion yuan, with short-term loans increasing by 2.07 trillion yuan, medium and long-term loans increasing by 4 trillion yuan, and bill financing decreasing by 345.6 billion yuan; loans to non-banking financial institutions increased by 83.6 billion yuan.
04
★★
Central Bank: RMB Deposits Increased by 8.74 Trillion Yuan in the First Two Months of This Year
Data from the central bank showed that at the end of February, the balance of domestic and foreign currency deposits was 317.66 trillion yuan, up 7.1% YoY. The RMB deposit balance at month-end was 310.97 trillion yuan, up 7% YoY. RMB deposits increased by 8.74 trillion yuan in the first two months. Among them, household deposits increased by 613 billion yuan, non-financial enterprise deposits decreased by 1.1 trillion yuan, fiscal deposits increased by 159 billion yuan, and deposits of non-banking financial institutions increased by 172 billion yuan. At the end of February, the balance of foreign currency deposits was $932.5 billion, up 12.7% YoY. Foreign currency deposits increased by $79.6 billion in the first two months.
★
Industry and Downstream
★
01
★★
Weighted Average Interest Rate of Newly Issued Personal Housing Loans in February Was About 3.1%, Down About 70 Basis Points YoY
According to the latest data obtained by reporters from the central bank, the weighted average interest rate of newly issued corporate loans (in both domestic and foreign currencies) in February was about 3.3%, down about 40 basis points YoY; the weighted average interest rate of newly issued personal housing loans (in both domestic and foreign currencies) was about 3.1%, down about 70 basis points YoY. Loan interest rates remained at historically low levels.
02
★★
Shenzhen: Removal of Household Registration and First Home Restrictions for Cross-Regional Housing Provident Fund Loans
On March 16, the Shenzhen Housing Provident Fund Management Committee issued two documents, "Supplementary Provisions on the Shenzhen Housing Provident Fund Loan Management Regulations" and "Notice on Matters Related to Housing Provident Fund Interest Subsidies in Our City," to adjust and optimize Shenzhen's housing provident fund loan and interest subsidy policies. The documents mentioned that to facilitate cross-regional contributors to purchase homes in Shenzhen, the restrictions on household registration and first home for cross-regional housing provident fund loans were removed. After the adjustment, cross-regional contributors, regardless of whether they have Shenzhen household registration, can apply for housing provident fund loans (including commercial-to-public loans) from the Shenzhen Provident Fund Center when purchasing their first or second commercial housing in Shenzhen, as long as they meet the city's housing provident fund loan conditions.
03
★★
Sanya Launches Special Rectification Campaign Targeting Real Estate Development, Transactions, and Intermediaries
The Sanya Housing and Urban-Rural Development Bureau recently issued the "2025 Sanya Real Estate Market Special Rectification Implementation Plan," effective from March 15. The campaign targets all real estate development enterprises, brokerage institutions, and internet-based real estate sales activities within Sanya's administrative region. The rectification includes actions such as selling pre-sale properties without obtaining pre-sale permits, hoarding properties to drive up prices, speculating on property numbers; publishing false or illegal real estate advertisements to mislead consumers; selling the same property to multiple buyers, using dual contracts; and assisting buyers in providing false proof materials to obtain purchase qualifications. The plan specifies that Sanya will also address intermediary practices such as unlicensed operations, exceeding business scope, publishing false property listings, forcing bundled services and fees, failing to clearly mark prices as required, and charging fees in violation of regulations.
04
★★
Harbin Introduces New Real Estate Regulations, Public Area and Usable Area Must Be Clearly Displayed
According to Harbin's official release, on March 14, reporters learned from the Harbin Housing and Urban-Rural Development Bureau that to further standardize the disclosure system for real estate sales areas and effectively protect consumers' legitimate rights and interests, the bureau issued the "Notice on Further Standardizing the Disclosure of Commercial Housing Sales Areas," effective immediately. The notice requires real estate developers to prominently display the building area, usable area of each unit, public area and its size, and the basis for the allocation of shared areas at sales offices, enhancing transparency in area disclosure.
★
Other Hot Topics
★
⭕【US-Europe Disputes Intensify as Portugal May Abandon Purchase of US F-35 Fighters for Political Reasons】
The US "Politico Europe" reported that "Portugal cancels the purchase of US-made F-35 fighters." This shift indicates that they may turn to purchasing European Typhoon fighters, Swedish Gripen fighters, or French fighters. The main reason for this change lies in political factors. Since the Trump administration took office, disputes with European NATO countries over issues such as Ukraine and European defense have intensified.
⭕【CPCA: Pickup Truck Market Sales in February Reached 43,000 Units, Up 29.7% YoY】Data from the CPCA showed that in February 2025, the pickup truck market sales reached 43,000 units, up 29.7% YoY from February 2024 and up 18.2% MoM, reaching a historical high for the same period in the past five years. In January-February 2025, the pickup truck market sales totaled 80,000 units, up 4.1% YoY from January-February 2024, showing overall good performance in 2025.
⭕【Experts: RRR Cuts Should Be Timely and Policy Resources Should Be Used Effectively】At an expanded meeting of the People's Bank of China Party Committee, it was reiterated that RRR cuts and interest rate cuts should be implemented at an appropriate time based on domestic and overseas economic and financial conditions and financial market operations. Industry experts believe that there is still ample room for moderately loose monetary policy in the future. Facing uncertainties in the internal and external macroeconomic environment, it is necessary to implement moderately loose monetary policy with proper timing, intensity, and effectiveness, ensuring that policy space is utilized efficiently at critical moments. What does "appropriate timing" for RRR cuts mean? Experts stated that RRR cuts should be implemented flexibly to maximize policy effectiveness. Despite the continuous economic recovery, there are still many challenges and uncertainties in the internal and external environment, making it necessary to maintain reasonable monetary policy space and adopt flexible measures based on domestic and international economic and financial conditions to address future uncertainties. Regarding interest rate cuts, the experts emphasized that structural interest rate cuts are also a form of interest rate reduction, which can help further lower commercial banks' funding costs, support banks in maintaining relatively stable net interest margins, and enhance support for the real economy, promoting stable or reduced financing costs for enterprises and credit costs for residents.
⭕【As of March 14, 2025, Approximately 1.3 Million Applications for Automobile Trade-In Subsidies Were Received Nationwide】At the "3.15 International Consumer Rights Day" themed event hosted by the China Consumers Association, it was revealed that in 2024, trade-in programs for consumer goods boosted related product sales by over 1.3 trillion yuan, contributing to an over 1 percentage point increase in the annual total retail sales of consumer goods. In 2025, the policy was strengthened and expanded, with 300 billion yuan allocated for ultra-long-term special treasury bonds to support the initiative. For the first time, subsidies for purchasing new digital products such as mobile phones were introduced, and the scope of subsidies for automobile and home appliance trade-ins was expanded. As of March 14, 2025, approximately 1.3 million applications for automobile trade-in subsidies were received nationwide; over 19 million consumers purchased more than 25 million units of 12 categories of home appliances under the trade-in program; and over 39 million consumers applied for subsidies for more than 49 million new digital products such as mobile phones.
⭕【Shandong's First NEV Recommended Detection Project Officially Launched】With the annual increase in NEV ownership, the demand for specialized safety performance detection of NEVs has become increasingly prominent. Starting this month, China's first safety detection standard specifically for NEVs, the "Inspection Regulations for NEV Operational Safety Performance," was officially implemented, making safety charging detection and electrical safety detection mandatory items. This marks a further improvement in the NEV safety detection system. Following the implementation of the new regulations, NEV recommended detection projects have been launched in various regions. Starting this month, Jinan Municipal Government Automobile Testing Center launched Shandong's first NEV testing line. In recent days, many NEV owners have brought their vehicles here for "check-ups." Similar to scheduling inspections for conventional internal combustion engine vehicles, owners only need to make an on-site appointment to conveniently undergo testing.
For queries, please contact William Gu at williamgu@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn