The recovery of social finance in January mainly came from the accelerated issuance of government bonds and the sharp expansion of bank loans. At the same time, the medium and long-term loans of enterprises also showed signs of slight improvement. This aggregate and structural data shows that the effect of the steady growth policy is beginning to appear.
Judging from the recent statement of the central bank, the expansion of credit volume and the decline of interest rate seem to continue. In this context, although the credit expansion mechanism is undergoing profound changes, the improvement of credit structure may also be slow.
The expansion of credit has a positive impact on the equity market as a whole. The performance of the pro cyclical sector is expected to be dominant, and the yield of the bond market may rise slightly.
