Central Bank RRRM Replacement Partial Mid-term Loan Facilitation

In order to further support the development of the real economy, optimize the liquidity structure, and reduce financing costs, the People's Bank of China decided to cut the deposit reserve ratio of financial institutions by 1 percentage point, of which, on January 15, 2019 and January 25, respectively, 0.5 percentage points. At the same time, the Medium Term Lending Facility (MLF), which expires in the first quarter of 2019, is not renewed.

How to take A shares after the RRR cut
How to take A shares after the RRR cut
Optimizing the liquidity structure and reducing financing costs, the People's Bank of China decided to cut the deposit reserve ratio of financial institutions by 1 percentage point. ...[full text]
Many private equity funds also analyzed that A-shares will usher in more favorable policies, and the central bank's RRR cut is only the beginning. ...[full text]
Small survey
Central bank interpretation

  The relevant person in charge of the People's Bank of China said: the reduction of the medium-term loan facilitation to support the development of the real economy

  1. How much is the release of the medium-term loan to facilitate the release of the loan?

A: The RRR cut will release about 1.5 trillion yuan of funds, plus the upcoming release of the medium-term loan facilitation operation and the funds released by the inclusive financial assessment of the inclusive finance, and then consider the medium-term loan convenience due in the first quarter of this year. After the factors continued, the net long-term funding was about 800 billion yuan.

  2. Does the RRR cut mean a change in the direction of sound monetary policy?

A: The RRR cut is still a directional regulation. It is not flooded, and the stable monetary policy orientation has not changed. The RRR cut policy is implemented twice, and it is compatible with the rhythm of cash before the Spring Festival. It is conducive to maintaining a reasonable and sufficient liquidity in the banking system. It also takes into account the internal and external equilibrium and helps maintain the basic exchange rate of the RMB at a reasonable and balanced level. stable.

  3. How does the RRR cut support the real economy?

A: The net reduction of RMB 800 billion in long-term incremental funds for this RRR cut and related operations can effectively increase the source of funds for real economy loans such as small and micro enterprises and private enterprises. The replacement of medium-term loan facilities can also directly reduce the interest rate of relevant banks by about 20 billion yuan per year, which is beneficial to the real economy to reduce costs through bank transfer. These are all conducive to supporting the development of the real economy.

Market interpretation
The central bank will enlarge the move! A total reduction of 1 percentage point release of 1.5 trillion yuan! How the most comprehensive interpretation affects the stock market bond market?

Shen Wan Hongyuan Research Report believes that the A-share market is still in the “bear market fourth stage”, although it should be more positive and less blind. However, the cycle of the decline in the fundamental trend has not yet ended. It is also an objective fact. Corresponding market judgment, the callback of the big cycle has not ended, and in 2019, the overall year is still a slow down. ...[Details]

Reduced! It’s the key to the two-step walk from the Prime Minister’s proposal. The overseas stock market has soared!

For analysts, the landing of this comprehensive RRR is expected. Because the current demand from the steady growth of the economy, or the need to supplement the gap in the base currency before the Spring Festival, it is necessary to hedge once. Therefore, this comprehensive RRR cut cannot be regarded as a strong stimulus, and it plays a more important role in hedging. ...[Details]

The fire line interprets the central bank's RRR cut: it is not a flood of water. It has a very positive effect on the stock market.

For the impact of the RRR cut, Zhang Dawei, chief analyst of Zhongyuan Real Estate, said that China's December PMI fell below the glory line for the first time in 29 months, reflecting the further downward pressure on the economy, which is conducive to further economic growth. ...[Details]

The RRR release of 1.5 trillion yuan The collective attitude of the organization is "small meaning": there are 3-4 times of "water release" throughout the year.

The RRR cut will release about 1.5 trillion yuan of funds, plus the upcoming release of the medium-term loan facilitation operation and the funds released by the inclusive financial assessment of the inclusive finance, and then consider the medium-term loan facility that expires in the first quarter of this year. After doing the factors, the net release of long-term funds is about 800 billion yuan. ...[Details]

The total haircut is the central bank's overall RRR cut! Released about 1.5 trillion yuan of funds next week, the stock market is expected to go so far

On January 4, 2019, Premier Li Keqiang successively inspected the Bank of China, Industrial and Commercial Bank, and the Construction Bank's Inclusive Finance Department, and hosted a symposium at the China Insurance Regulatory Commission. The Prime Minister stressed that it is necessary to increase the intensity of macroeconomic policy counter-cyclical adjustment and further reduce it. Tax reduction measures, the use of comprehensive reduction of standards, targeted reduction tools, support for private enterprises and small and micro enterprises financing. ...[Details]

Eight experts interpret the RRR cut: 2440 points is expected to become the fifth historical outsole of China's stock market

Li Dazhao, chief economist of Yingda Securities, said that this move is a major positive news, which is in line with the current economic situation. It is a timely rain, which is conducive to the development of small and medium-sized enterprises and private enterprises, and is conducive to stabilizing economic growth and the stock market. There is also a very positive positive effect. Today's low of 2440 points is expected to become the fifth historical bottom of the Chinese stock market, and there is room for further reduction as needed. ...[Details]

Heavy landing! The central bank has actually lowered the standard and released 1.5 trillion liquidity. The external stock market has heard a big rise (with the trend of lowering A shares)

The central bank stressed that the RRR cut is still a directional regulation, not a flood of water, and the stable monetary policy orientation has not changed. The RRR cut policy is implemented twice, and it is compatible with the rhythm of cash before the Spring Festival. It is conducive to maintaining a reasonable and sufficient liquidity in the banking system. It also takes into account the internal and external equilibrium and helps maintain the basic exchange rate of the RMB at a reasonable and balanced level. stable. ...[Details]

How have the stock market, bond market, and foreign exchange market gone after the previous RRR cuts? Good for the four major plates (with interpretation)

Lian Ping, chief economist of Tonghua Bank, believes that the RRR has chosen an important time window. Before the beginning of the year and the Spring Festival, there will usually be more obvious fluctuations in market liquidity. The RRR cut will help to maintain a reasonable and sufficient market liquidity. Vibrate the confidence of the market throughout the year. ...[Details]

The central bank lowered the standard! The latest interpretation of the organization (with the impact of the stock market)

The central bank announced a full-scale RRR cut and connected several institutions to interpret it. Li Xunlei, chief economist of Zhongtai Securities, said that the central bank is expected to cut the deposit reserve ratio by 3 percentage points this year. Yingda Securities Li Dazhao said that the news is a major positive. . ...[Details]

The central bank announced the RRR cut: A share impact analysis Interpretation of the good sector (with stocks)

On Friday (January 4), the central bank announced a full RRR cut. Some institutional analysts said that the news was a big positive for the stock market. Most people think that the RRR cut is good for the current economy and the stock market. Generally speaking, the RRR cut is sensitive to funds. The type of plate is more favorable, and it also has a certain positive effect on some blue chip sectors. ...[Details]

Huatai Macro Li Chao team: After the RRR cut, there will be a comprehensive rate cut!

Huatai's macro Li Chao team believes that the central bank's current RRR cut is in line with its annual strategy report, "Winter Spring Comes Back, No Extreme Comes", and predicts that "the central bank's monetary policy will choose to lower the standard in 2019 to solve the growth of the social growth. The problem of lack, predicting that the central bank will have 3-4 times in 2019." ...[Details]

Sun Chao comments on the central bank's RRR cut: still need to observe the strength and determination of "wide credit"

Sun Chao, deputy general manager of Changjiang Securities' fixed income headquarters, said that the one-time net release of long-term funds was about 800 billion yuan. Second, the central bank emphasized the time factor, which is in line with the rhythm of cash before the Spring Festival. It is a directional regulation, not a flood of water, and the sound monetary policy orientation has not changed. ...[Details]

Heavy! The central bank announced a RRR cut! Industry: 2% will be lowered in 2019

The market basically agreed on the forecast of the monetary environment this year, that is, the monetary policy is expected to be moderately loose this year. This comprehensive RRR cut has further strengthened the market's previous judgments, but industry insiders stressed that it is impossible to flood the water. Recently, the macroeconomic forecasting group of Guanghua Institute of Thought of Guanghua School of Management of Peking University issued a report to judge that the adjustment space of monetary policy will be expanded in 2019, and the counter-cyclical adjustment function will be strengthened. ...[Details]

Zhang Wei: 2-3 times a year or downgrade will help improve credit mismatch

Although the high-level focus is on ensuring that liquidity is reasonable, it does not mean that interest rates will fall after the RRR cut. Because according to the above analysis, China has ample room for RRR reduction, and it can play a positive role in facilitating the channel of credit. However, the traditional “reduction of interest rates” is slightly suspected of flooding, and it is described as “double-edged sword”. For too. ...[Details]

Zhang Dawei, chief analyst of Zhongyuan Real Estate: The central bank lowered the favorable real estate industry

Zhang Dawei believes that the purpose of the RRR cut is not to gasp the property market, but it is difficult to avoid, and the property market will benefit. Zhang Dawei said that the development of the real economy has entered a new cycle. In 2019, it is still necessary to stabilize. In this case, buying a house requires more caution, and real estate has no possibility of being fully stimulated. ...[Details]

Reduced! Institution: Major positives 2440 looks into the fifth historical outsole

Regarding the significance of the central bank's current RRR cut, Li Dazhao believes that this move is a major positive news, which is in line with the current economic situation. It is a timely rain, which is conducive to the development of small and medium-sized enterprises and private enterprises, and is conducive to stabilizing economic growth. The stock market also has a very positive positive effect. Today's low of 2440 is expected to become the fifth historical bottom of the Chinese stock market. ...[Details]

Guo Shu, a master organization: the RRR cut will help the home loan to return to the benchmark interest rate

For housing enterprises, the difficulty of obtaining bank loan support will be greatly reduced, the tight cash flow of housing enterprises will be improved, and financing costs are also expected to be lowered. In particular, state-owned enterprises, central enterprises, and the top 30 headed enterprises in the country will benefit from it. ...[Details]

Yang Delong: The central bank started the first year of this year's RRR cuts and vigorously supported the development of the real economy.

After three consecutive years of plunge, the A-share market has fallen out of value. Before the holiday, the State Council Financial Stability Development Committee proposed that the A-share market already has medium and long-term investment value, and has fully released various risks. This is undoubtedly affirming the current investment value of A-shares from the central perspective. ...[Details]

Lian Ping, chief economist of Bank of Communications: It is expected that there will be one or two RRR cuts in the first half of the year.

Lian Ping, chief economist of the Bank of Communications, said in an interview with China Net Financial News that from the two factors of the scale of the RRR and the orientation, the current monetary policy should still be in a stable overall tone. Next, but the policy orientation is relatively clear, that is, according to actual needs, make appropriate adjustments to the loose direction. ...[Details]

The People's Bank of China: 1.5 million trillion yuan of funds released this time.

The RRR cut is still a directional regulation, not a flood of water, and the stable monetary policy orientation has not changed. The RRR cut policy is implemented twice, and it is compatible with the rhythm of cash before the Spring Festival. It is conducive to maintaining a reasonable and sufficient liquidity in the banking system. It also takes into account the internal and external equilibrium and helps maintain the basic exchange rate of the RMB at a reasonable and balanced level. stable. ...[Details]

List of previous revisions
List of beneficiary shares