The People's Bank of China announced that it will lower the reserve requirement ratio by 0.5 percentage points in the near future, providing approximately 1 trillion yuan of long-term liquidity to the financial market.
Pan Gongsheng, governor of the People's Bank of China, said that the central bank's policy interest rate will be lowered, and the 7-day reverse repurchase operation rate will be reduced by 0.2 percentage points from the current 1.7% to 1.5%, guiding the loan market benchmark rate and deposit rate to decline simultaneously and maintaining the stability of the net interest margin of commercial banks.
Pan Gongsheng introduced that in terms of housing loans, the interest rates of existing housing loans will be lowered and the minimum down payment ratio for housing loans will be unified.
300 billion, 300 billion, and another 300 billion; 500 billion, 500 billion, and another 500 billion. Central Bank Governor Pan Gongsheng strongly supported the capital market at a press conference held by the State Council Information Office, which attracted widespread attention from the market.
On September 24, the central bank announced the creation of two structural monetary policy tools to support the stable development of the capital market. The first tool is the securities, funds, and insurance companies swap facility, with an initial operation scale of 500 billion yuan, which can be expanded in the future depending on the situation.
Pan Gongsheng, governor of the central bank, said at a press conference held by the State Council Information Office, "As long as this is done well, the first phase of 500 billion yuan can be followed by another 500 billion yuan, or even a third 500 billion yuan. I think it is all possible and open."
The second tool is stock repurchase and shareholding refinancing, with an initial quota of 300 billion yuan. "If this tool is used well, we can get another 300 billion yuan, or even a third 300 billion yuan," Pan Gongsheng also emphasized.
Affected by this, on September 24, the three major A-share indices rose sharply. As of the close, the Shanghai Composite Index closed up 4.15% at 2863.13 points, the largest single-day increase since July 2020; the Shenzhen Component Index rose 4.36%; and the ChiNext Index rose 5.54%.
More than 5,100 stocks rose in the market. The turnover of Shanghai and Shenzhen stock markets reached 971.3 billion yuan. The turnover of A shares exceeded 970 billion yuan throughout the day, setting a new high since May 20.
Diversified finance, steel, insurance, securities, coal, and liquor sectors led the gains.
Specifically, the diversified financial sector saw a surge in daily limit increases, with Jianyuan Trust, Hyde Holdings, and Aichuang Group all hitting their daily limit.
I am very happy to see this market today, although I have to focus on the crypto market now. But it is really not easy for the brothers and sisters in the A-share market. It has been four years, and I know how I have been through these four years. That market, in the early stage, was in the medical field, and later in AI, basically everything that could fall has fallen. Yesterday I was still saying that China Ping An was more than 40 yuan ten years ago, and after 10 years, China Ping An is still more than 40 yuan. Even Moutai, the Maozi that was once praised by countless people, has been bearish recently. Today it has risen by 9 points!
It is necessary to talk about the current economy.
The differences are really visible to the naked eye. The so-called consumption stimulus that started the year before last is ineffective. There is really no manufacturing industry, so the real estate industry has to come back.
If real estate is turned into immovable property, there will be no liquidity.
Today's news has indeed had some effect on stimulating the market, but it is not enough for long-term development. In the past few years, the fundamentals of the market have experienced many adverse cycles. In addition, the current policy environment is not conducive to economic development, in addition to the domestic and international situations.
Why do we specifically talk about the domestic economy today?
Because it is very important to let everyone notice that if the crypto market wants to prosper, the global economy cannot be too bad. Only when the United States is doing well, the war stops, and the global economy develops steadily, more money will flow. Then the crypto market may be able to have a long-term prosperity like the US stock market!
Bitcoin has been trading sideways around 63,000 for almost a week. After passing 64,000, it can still rise.
(The crypto market is volatile, this is just a sharing of opinions, not investment advice)
