Breaking News! PBOC introduces multiple financial policies for high-quality economic development
The State Council Information Office held a press conference this morning (Sept. 24), where the main responsible officials from the People's Bank of China, the National Financial Regulatory Bureau, and the China Securities Regulatory Commission introduced financial support for high-quality economic development. Multiple significant policies were launched simultaneously, increasing the intensity of monetary policy adjustments to support stable economic growth further.
At the press conference, the People's Bank of China announced that it will lower the reserve requirement ratio by 0.5 percentage points shortly, providing approximately RMB1 yuan in long-term liquidity to the financial market.
The main official from the People's Bank of China also stated that the central bank's policy interest rates will be reduced, with the 7-day reverse repurchase operation rate lowered by 0.2 percentage points, from the current 1.7% to 1.5%, guiding both loan market quoted rates and deposit rates to decline simultaneously, while maintaining the stability of commercial banks' net interest margins.
The official further explained that in terms of mortgage loans, the rates for existing mortgage loans will be lowered, and the minimum down payment ratio for mortgages will be standardized. Specifically, commercial banks are guided to bring the rates of existing mortgage loans down to the levels of new mortgage loan rates, with an expected average reduction of approximately 0.5 percentage points; the minimum down payment ratio for second homes will be reduced from 25% to 15% nationwide, standardizing the minimum down payment ratios for both first and second homes.
In addition, the People's Bank of China stated that it will soon create new monetary policy tools to support the stable development of the stock market. This includes facilitating swaps among securities, funds, and insurance companies, allowing qualified securities, funds, and insurance companies to obtain liquidity from the central bank through asset pledges, significantly enhancing their ability to access funds and increase stock holdings. Special re-lending programs will also be established to guide banks in providing loans to listed companies and major shareholders to support stock repurchases and increases in shareholding.
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