Is RRR cut good or bad for the stock market? The impact of RRR cut on the stock market is not direct, but indirect, and it is an indirect positive impact. As mentioned earlier, RRR cut is the macro-control operation of the central bank. It is aimed at the RRR reduction of foreign exchange, mainly to resist the current depreciation trend of RMB, so it does not directly affect the stock market, but plays an indirect positive role.
Under the expectation of RMB depreciation, investors naturally tend to look for safe havens, while the downward adjustment of bank deposit interest rate and the economic downturn in the property market make people flock to the stock market, which is good for the stock market. In addition, the depreciation of RMB will promote exports and restrain imports, improve the export competitiveness of China commodities and maintain overall economic stability. With the improvement of the operating conditions of export-oriented listed companies, the corresponding listed companies will naturally have a certain positive impact on stocks.
Of course, RRR's interest rate cut is not only beneficial to the stock market, but also to banks. By reducing RRR, on the one hand, the central bank will increase the liquidity of the market and make commercial banks have stronger credit capacity; On the other hand, the liquidity of funds will be relatively loose, which will help reduce the cost of commercial banks at the market interest rate level and help banks provide lower financing costs and credit funds in the future.