The combination of financial policies continues to exert force, significantly boosting market confidence
2024-10-09
Lowering the reserve requirement ratio and policy interest rate, guiding the reduction of existing housing loan interest rates, and promoting the entry of medium and long-term funds into the market... Recently, the financial management department has issued multiple heavyweight financial policies, releasing strong signals of financial support for stable economic growth and high-quality development. With the support of a series of stock policies and incremental policies, social expectations have significantly improved and market confidence has significantly increased. Since the beginning of this year, the overall operation of China's economy has been stable and making progress, but there have also been some new situations and problems. The meeting of the Political Bureau of the Central Committee of the Communist Party of China held on September 26th emphasized the need to focus on key areas, take proactive measures, effectively implement existing policies, intensify the introduction of incremental policies, and further improve the pertinence and effectiveness of policy measures. On September 27, the People's Bank of China announced that from September 27, it would cut the deposit reserve ratio of financial institutions by 0.5 percentage points (excluding financial institutions that have implemented a 5% deposit reserve ratio). After this reduction, the weighted average reserve requirement ratio for financial institutions is about 6.6%. On the same day, the People's Bank of China announced that the operating interest rate of 7-day reverse repo was adjusted from 1.7% to 1.5%, a decrease of 20 basis points. China adheres to a supportive monetary policy stance, increases the intensity of monetary policy regulation, improves the precision of monetary policy regulation, and creates a favorable monetary and financial environment for stable economic growth and high-quality development Dong Ximiao, the chief researcher of China Merchants Association, said that the People's Bank of China made efforts from both the total amount and the price. In terms of the total amount, this RRR reduction is the second RRR reduction within the year, which is expected to release about 1 trillion yuan of long-term liquidity; In terms of price, the policy interest rate has been lowered by 20 basis points, the largest decrease in nearly 4 years. The reserve requirement ratio and interest rate cuts are significant and timely Ye Yindan, a researcher at the Bank of China Research Institute, believes that the downgrade will provide long-term low-cost funds for the banking system, enhance the driving force and sustainability of banks in serving the real economy. Under the market-oriented interest rate regulation mechanism, the reduction of policy interest rates will drive down various market benchmark interest rates, promote the reduction of corporate financing costs, stimulate the expansion of domestic demand, and unleash consumption and investment potential. The implementation of monetary policy has been strengthened, providing strong support for credit growth. "The People's Bank of China will further release more long-term funds and optimize the bank's capital structure by reducing the required reserve ratio by 0.5% this time. Next, we will focus on serving the real economy, focus on doing a good job in 'five major articles', accurately grasp the direction of business development, and continue to increase the investment in key areas and weak links," said the relevant person in charge of Bank of Communications Ningbo Branch. Recently, the financial management department announced five financial policies related to the real estate market, aimed at promoting the stable and healthy development of the real estate market. These policies include guiding banks to reduce the interest rate of existing housing loans, unifying the minimum down payment ratio for housing loans, extending the term of two real estate financial policy documents, optimizing the policy of re lending for affordable housing, and supporting the acquisition of existing land by real estate enterprises. Both supply and demand sides are working together to improve real estate financial policies. From the demand side, the People's Bank of China has guided commercial banks to reduce the interest rate of existing housing loans to near the interest rate of new loans, with an average decrease of about 0.5 percentage points; Standardize the minimum down payment ratio for first-time and second home mortgages at the national level to 15%, in order to better support the rigid and diversified housing needs of residents. Mr. Zhang, who lives in Qingdao, Shandong, has been focusing on improving sexual housing recently. The house is a bit small now, and I want to buy another three bedroom apartment near my child's school, "Mr. Zhang said. The policy of lowering the interest rate on existing mortgage loans and lowering the minimum down payment ratio is a great benefit for his family. Data shows that as of the end of June, the balance of personal housing loans in China was 37.79 trillion yuan. The decrease in interest rates for existing housing loans will effectively alleviate the monthly mortgage burden for households that have already purchased a house, benefiting an estimated 50 million households and 150 million people, with an average annual reduction of about 150 billion yuan in household interest expenses. Lowering the interest rate of existing housing loans will reduce the borrower's housing loan interest expenses, alleviate the borrower's repayment pressure, have the ability to increase other consumer expenses, and reduce early repayment behavior Dong Ximiao said. The financial management department has also introduced many policy measures that benefit the supply side. For example, the People's Bank of China and the State Administration of Financial Supervision and Administration have decided to extend the phased policies such as operational property loans to the end of 2026, which will help to further revitalize the existing assets of real estate enterprises, improve their cash flow, and promote a virtuous circle between finance and real estate. As early as April, the Shanghai headquarters of the People's Bank of China and the Shanghai Regulatory Bureau of the State Administration of Financial Supervision and Administration organized a centralized signing conference for operational property loans in Shanghai. Eight major commercial banks and 12 real estate enterprises participated in the conference, with a loan amount of 14.6 billion yuan. The extension of the operational property loan policy will continue to strongly support the financing of private real estate enterprises. This round of real estate financial policies has been further intensified without changing the consistent policy orientation, and the connection between old and new policies is steadily and orderly Wen Bin, Chief Economist of China Minsheng Bank, stated that the increased financial policy support sends a clear signal of stabilizing the real estate market. (New Society)
Edit：Yao Jue Responsible editor：Liu Yanghe
Source：People.cn
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