The State Council today promulgated the Deposit Insurance Ordinance, which will take effect on May 1. The People's Bank of China is responsible for implementing the deposit insurance system, with a maximum repayment limit of 500,000 yuan. Hong Hao, managing director of Bank of Communications International, commented that the long-term benefits of this system are greater than its short-term benefits, and the next step after deposit insurance is the marketization of deposit interest rates. This will lead to competition for deposits and squeeze the spread income of banks. It has a greater impact on small banks. The next step after interest rate liberalization is the opening of capital account. This will promote the introduction of foreign capital into the China market.

As for the A-share market, it stressed that the profit-taking of funds at the end of the quarter and the large amount of foreign funds cashing in A-share index funds were the reasons for Wednesday's fluctuation. It emphasizes that if the logic of rising has not been changed, then there is no need to try to predict every rise and fall of the market, because that is impossible.