Experts say that the liquidity of the financial system needs to be measured by the size of social financing.

Experts indicate that currently, in China, direct financing and non-banking businesses are developing at a faster pace, making the social financing channels more diverse, and causing significant changes in the asset-liability structure of the financial system. When observing the total social financing volume, we should not just focus on the loan growth rate as we did in the past, but also consider the size of social financing which includes indirect financing such as loans and direct financing such as bonds. The overall liquidity in society can also be comprehensively measured on a larger scale. Adjusting the allocation of household assets does not necessarily mean a significant change in liquidity. Experts point out that from a holistic perspective, even if some deposits are shifted towards wealth management products, most of it is ultimately channeled into interbank deposits and certificates of deposit, which will flow back into the banking system. In reality, it is more of a change in the structure of bank deposits, rather than affecting the total liquidity. Looking ahead, as China's financial markets continue to deepen and investment channels become more diversified, households will adjust their asset allocations between deposits and other assets based on different returns. In the future, household asset allocations may become more flexible.