The expected RRR cut is coming! ?

on the evening of March 13th, the central bank announced that it had decided to implement the inclusive finance targeted cuts to required reserve ratios on March 16th, 22, with .5 to 1 percentage point for targeted cuts to required reserve ratios, a bank that meets the assessment criteria. In addition, eligible joint-stock commercial banks will receive an additional 1 percentage point of targeted cuts to required reserve ratios to support the issuance of loans in inclusive finance. ?

targeted cuts to required reserve ratios * * released 55 billion yuan of long-term funds. ?

inclusive finance targeted cuts to required reserve ratios will be implemented, releasing long-term funds of 55 billion yuan? ?

according to the website of the central bank, 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 the inclusive finance targeted cuts to required reserve ratios on March 16, 22, giving targeted cuts to required reserve ratios, a bank that meets the assessment criteria, .5 to 1 percentage point. In addition, eligible joint-stock commercial banks will receive an additional 1 percentage point of targeted cuts to required reserve ratios to support the issuance of loans in inclusive finance. The above targeted cuts to required reserve ratios * * * released long-term funds of 55 billion yuan. ?

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

the person in charge of the people's bank of China said: targeted cuts to required reserve ratios supports the development of the real economy?

Q: How will targeted cuts to required reserve ratios support the development of the real economy this time? ?

a: this time, targeted cuts to required reserve ratios released 55 billion yuan of long-term funds, including 4 billion yuan for banks that meet the assessment criteria of inclusive finance and targeted cuts to required reserve ratios, and 15 billion yuan for qualified joint-stock commercial banks with an additional 1 percentage point. The release of long-term funds in targeted cuts to required reserve ratios has effectively increased the stable sources of funds for banks to support the real economy, and directly reduced the interest payment costs of relevant banks by about 8.5 billion yuan every year. Through bank transmission, it is conducive to promoting the reduction of the real interest rate of loans for small and micro enterprises and directly supporting the real economy. This time, targeted cuts to required reserve ratios has given consideration to both active promotion and post-incentive, and used market-oriented reform to unblock the transmission of monetary policy, which is conducive to stimulating the vitality of market players, further exerting the decisive role of the market in resource allocation and supporting the development of the real economy. ?

Q: What is the specific content of this targeted cuts to required reserve ratios in inclusive finance? ? ?

A: Since 218, the People's Bank of China has established an annual assessment system for targeted cuts to required reserve ratios in inclusive finance, giving .5 percentage points or 1.5 percentage points to large and medium-sized commercial banks with loans in inclusive finance. Loans in inclusive finance include farmers' production and operation loans, poverty-stricken people's consumption loans, student loans, business guarantee loans, business loans for individual industrial and commercial households, business loans for small and micro enterprises, loans for small enterprises with a single credit of less than 1 million, and loans for micro enterprises with a single credit of less than 1 million. The assessment targets include large banks, joint-stock banks, city commercial banks, larger rural commercial banks and foreign banks. Recently, the People's Bank of China completed the annual assessment for 219. Some banks that meet the standards have been given .5 percentage points of reserve ratio concessions instead of .5 percentage points, while others have been given 1.5 percentage points from .5 percentage points. Overall, these banks have been given .5 to 1 percentage point of targeted cuts to required reserve ratios. ?

Q: What is the consideration for adding targeted cuts to required reserve ratios to qualified joint-stock commercial banks? ?

a: medium-sized banks represented by joint-stock commercial banks are an important part of China's banking system. Considering that the People's Bank of China implemented the targeted cuts to required reserve ratios for eligible rural commercial banks and city commercial banks last year, all large commercial banks in targeted cuts to required reserve ratios, inclusive finance will receive a 1.5 percentage point preferential reserve ratio this time. In order to give full play to targeted cuts to required reserve ratios's positive incentive role, support joint-stock banks to issue loans in inclusive finance, and at the same time optimize the "three grades and two excellent" deposit reserve ratio framework, This time, the joint-stock commercial banks with .5% preferential reserve ratio will be given an additional 1% targeted cuts to required reserve ratios. At the same time, it is required to use the reduced funds to issue loans in inclusive finance, and the loan interest rate will drop significantly, thus increasing the credit support for small and micro enterprises, private enterprises and other inclusive finance areas. ?

a list of previous RRR cuts in p>214?

On March 1th, the Standing Committee of the State Council pointed out that inclusive finance and targeted cuts to required reserve ratios measures should be promptly introduced, and additional efforts should be made to reduce the RRR for joint-stock banks, so as to encourage commercial banks to increase loan support for small and micro enterprises and individual industrial and commercial households, help them to resume work and production, and promote the reduction of financing costs. ?

according to the statistics of the central bank, excluding this operation, since 214, the central bank has implemented at least 16 RRR cuts (some of which are implemented in stages on the same day). ?

what is the impact on a shares? ?

targeted cuts to required reserve ratios has played different roles in the A-share market. ?

Among them, in targeted cuts to required reserve ratios twice in 214, the main index of A-share market went up after 3 months; In 215, there were five times of targeted cuts to required reserve ratios, and the bull market effect was superimposed. Except for the index correction in June and October of that year, the main indexes of the A-share market all showed obvious upward trend during one week, one month and three months. ?

in addition, after the RRR cut was implemented in January this year, the main indexes of the A-share market showed obvious upward trend the next day and one week. ?

Jufeng Investment Gu pointed out that from the regular meeting of the State Council on March 1th, it can be seen that after the central bank opened the RRR cut button, it released more liquidity to local commercial banks, so as to support local commercial banks to lend loans to small and micro enterprises and individual industrial and commercial households, thus helping enterprises to resume their work and production and solving the problem of capital shortage. Inclusive finance and targeted cuts to required reserve ratios, the central bank, will directly benefit the city commercial banks, and will form short-term benefits for the banking sector. In addition, affected by the epidemic, China's automobile production and sales declined sharply in February. At present, all localities are returning to work one after another, and the automobile production and sales should improve in March. ?

what is the impact on the property market? ?

The epidemic has had a great impact on the property market in a short period of time. Among the 27 key cities monitored by Kerui, the overall transaction volume in February was only 2.4 million square meters, with a drop of 83% from the previous month and 77% from the same period last year, the biggest drop ever. The total transaction volume of the property market in the four first-tier cities was only 29, square meters, down 82% from the previous month and down 73% year-on-year, with Guangzhou having the most significant decline.

zotye securities pointed out that the epidemic affected the short-term but did not change the logic of long-term improvement. As the demand for durable goods, the essence of commercial housing is that the demand is delayed, superimposed and countercyclically adjusted, and the short-term impact is limited. The logic of optimistic about leading housing enterprises in the medium and long term remains unchanged; Due to the impact of the epidemic, property management has attracted the attention of the society and the government, and its value has been further recognized, and the short-term cost has increased. However, the promotion of the long-term market value has been accelerated by the government's attention and the improvement of the industry system, which has multiple benefits for high-quality brand property management enterprises in many fields such as word-of-mouth realization, business development and government-enterprise relations. ?

In addition, there is no need to be too pessimistic about the property market. In February, the real estate industry still had contrarian data. For example, the sales growth of real estate enterprises in February exceeded 1%; Land transfer fees in first-tier cities soared by 8% year-on-year, and Beijing and Shanghai repeatedly set new records; 76 real estate stocks rose collectively, with the highest increase exceeding 3%. ?

what is the impact on the bond market? ?

The data shows that targeted cuts to required reserve ratios has had an obvious influence on the bond market. Among them, one week after the implementation of targeted cuts to required reserve ratios in April 214, the yield to maturity of China Bond's 1-year national debt dropped by 4.92bp, and the monthly decline even reached 17.2bp. In targeted cuts to required reserve ratios in June of that year, yield to maturity, the 1-year national debt of China Bond, also dropped by 3.25bp a week. ?

In p>215, the RRR was lowered five times, and the yield to maturity of China Bond's 1-year national debt was even higher from the high of 3.7% in that year, and once approached 2.7%. In targeted cuts to required reserve ratios in early 218, yield to maturity, the 1-year national debt of China Bond, also fell by 3.69bp a week. ?

Since the outbreak of the COVID-19 epidemic, the bond market has supported the development of the real economy in various ways, including establishing a "green channel" for bond issuance, extending the validity period of the bond issuance quota, reasonably adjusting the time limit for information disclosure, and increasing the fee reduction and exemption for institutions in areas affected by the epidemic. ?

On March 11th, responsible comrades of the People's Bank of China and the China Securities Regulatory Commission also pointed out that the next step would be to take effective measures to accelerate reform and innovation, enhance the financing function of the bond market and improve the quality and efficiency of the bond market in serving the real economy. Guide the flow of funds to key areas, key industries and weak links, support the transformation and upgrading of economic structure, and increase support for private enterprise bond financing.