It’s not surprising that the central bank’s RRR cut is coming.

On the afternoon of March 13, the central bank announced that it would implement a targeted reserve requirement ratio reduction for inclusive finance on March 16, 2020, and would reduce the required reserve ratio by 0.5 to 1 percentage point for banks that meet the assessment standards. In addition, eligible joint-stock commercial banks will be targeted to reduce the required reserve ratio by an additional 1 percentage point to support the issuance of loans in the inclusive finance field.

According to the central bank’s website, in order to support the development of the real economy and reduce the actual cost of social financing, the People’s Bank of China decided to implement a targeted reserve requirement ratio reduction for inclusive finance on March 16, 2020. The first sentence at the beginning mentions "to support the development of the real economy", and the same is true for the recommended title on the homepage of the website. It can be seen that the intention of this interest rate cut is very clear.

The People's Bank of China implements a prudent monetary policy, is more flexible and appropriate, puts support for the recovery and development of the real economy in a more prominent position, does not engage in flooding, takes into account internal and external balance, maintains reasonable and sufficient liquidity, and maintains currency The growth of credit and social financing is in line with economic development, creating a suitable monetary and financial environment for high-quality development and supply-side structural reform.

This more clearly expresses the real intention of this RRR cut. The real purpose is to help restore confidence in the real economy by releasing loose monetary policy. In previous RRR cuts, many parties have clearly stated the purpose of the RRR reduction. The RRR reduction is to solve the top priority of small and medium-sized enterprises. The purpose is to reduce the actual interest rate and comprehensive financing costs, and help alleviate the problem of difficult and expensive financing for small and micro enterprises. The main purpose is to promote the development of the real economy and promote economic vitality.

The purpose of this RRR cut is more clear. The relevant person in charge of the People's Bank of China made it clear: the targeted RRR cut supports the development of the real economy. This targeted RRR cut releases long-term funds and effectively increases the bank's support for the stability of the real economy. The source of funds can also directly reduce the interest payment costs of relevant banks by about 8.5 billion yuan per year. Through bank transmission, it will help reduce the actual interest rates of small and micro and private enterprise loans and directly support the real economy.

So, everyone should be aware that the hope of releasing a signal of loosening for real estate through the central bank's RRR cut has failed.

We all know that real estate has been objectively affected greatly recently. In fact, which industry is not affected so much? It's just that relatively speaking, real estate may be the first to bear the brunt. The sales performance of real estate companies in February also suffered greatly.

As of March 12, according to data from the Centaline Real Estate Research Center, in the first two months of 2020, the total contracted sales of the 30 listed real estate companies that have announced sales performance reached 552.5 billion yuan, a year-on-year decrease of 19%. . Among the 30 real estate companies, only 4 had a year-on-year sales increase, ranging from 8 to 66, while the remaining 26 all declined year-on-year, accounting for nearly 90%.

So, how eager is the real estate industry at this time for a timely rain! They have pinned their hopes on the central bank's RRR cut, so will this move have an impact on real estate? Although it was clear from the beginning that the purpose of the RRR cut was the real economy, would real estate really not be benefited?

It can be said with certainty that the RRR cut is good for real estate. This is undeniable, but the benefits are minimal and will not have much positive impact on real estate. Because some places now have moderate policy easing, of course, under the position of ensuring that houses are used for living in rather than for speculation, it is simply impossible to easily invest funds in real estate. Recently, the country has repeatedly reiterated its positioning of "housing is for living, not for speculation" and has made it clear that it will not rely too much on real estate to drive economic growth.

It can be seen that the determination of real estate regulation is firm, sustained and stable. We will not destroy the results achieved by unswervingly adhering to regulation and releasing liquidity. It is precisely at this time that various speculation forces can easily take advantage of this opportunity to carry out a round of crazy speculation. Therefore, special attention must be paid to preventing price speculation and ensuring the stable and healthy development of the market.

Since I dare to say this, it means that there is no need to be overly pessimistic. Real estate naturally has its own development rules. If there is demand, there is no need to worry about the market being in a downturn. It is more important to guard against speculation.