"RRR cut" means that the central bank reduces the statutory deposit reserve ratio and the benchmark interest rate for deposits and loans. If the central bank reduces RRR, it will make the bank's funds more relaxed and abundant, and it will also bring benefits to bank stocks.

As for interest rate cuts, there are good and bad. Because if the central bank cuts interest rates, more funds will flow to the stock market, capital liquidity will be enhanced, market financing costs will be reduced, and asset prices will rise, thus enhancing the attractiveness of stocks and stimulating investment demand. From this perspective, it is indeed good for banking stocks.

However, interest rate cuts will reduce the loan interest rate, spread income, deposit yield and attractiveness, leading to capital outflows, so it will also bring bad news.

However, the changes in the market and the ups and downs of the stock market are not absolute, and the stock market is always changing. Therefore, investors must pay close attention to market trends and the impact of relevant policies when investing in stocks to keep up with market trends.

Tips: The above contents are for reference only. Investment is risky, so be cautious when entering the market.

Response time: 2021-11-12. Please refer to the latest business changes announced by Ping An Bank in official website.