[Citic Securities comments on April Financial data: credit tempo returns to stable April household deposits fell 1.2 trillion is seasonal fluctuation] the central bank today released financial and credit data for April 2023. Of this total, new credit was 720 billion yuan (650 billion yuan in the same period last year), and social financing totaled 1.22 trillion yuan (900 billion yuan in the same period last year). Citic Securities commented as follows: credit fell significantly in April after explosive growth in the first quarter. From a structural point of view, the residential sector once again "shrank the table", but the medium-and long-term loans of enterprises are more resilient. The decline in credit may be due to overdrafts of some bank credit lines and corporate credit demand in the first quarter, and marginal weakness in property sales in April. The growth rate of social finance was the same as that of last month, and non-standard financing continued to improve. M2 growth slowed down from a high base. More deposits were added in April 2022, on the one hand, because there was a wave of redemptions of "fixed income plus" wealth management products, which were converted into deposits, and on the other hand, because the government launched a large-scale VAT retention and return in April last year, pushing up corporate deposits. Household deposits fell by 1.2 trillion yuan in April, which is a seasonal fluctuation. Because banks tend to let wealth management products expire at the end of the quarter, so that the funds back into deposits, in order to cope with the assessment, and then issue new wealth management products early next quarter to undertake. As a result, household deposits often fluctuate at the beginning of the last quarter. M1 grew by 5.3% in April, up 0.2 percentage points from the previous month, perhaps reflecting an increase in business activity.