China News Service, Beijing, December 15 (Gong Hongyu, Zuo Yuqing) On the 15th, the central bank's second round of RRR cuts this year officially landed.

　　A few days ago, the central bank announced that it will lower the deposit reserve ratio of financial institutions by 0.5 percentage points on the 15th (excluding financial institutions that have implemented a 5% deposit reserve ratio).

　　The RRR cut is the second time the central bank has cut its RRR in 2021 after July 15, releasing a total of about 1.2 trillion yuan in long-term funds.

Data map: RMB.

Photo by Gong Hongyu

Better support the real economy

　　On December 6, when the relevant person in charge of the central bank responded to a reporter's question, he said that the purpose of this RRR cut is to strengthen cross-cycle adjustment, optimize the capital structure of financial institutions, improve financial service capabilities, and better support the real economy.

　　The first is to effectively increase the long-term stable funding sources of financial institutions to support the real economy while maintaining reasonable and abundant liquidity, and enhance the financial institutions' ability to allocate funds.

The second is to guide financial institutions to actively use the RRR cut funds to increase their support to the real economy, especially small, medium and micro enterprises.

The third is that the RRR cut has reduced the capital cost of financial institutions by approximately 15 billion yuan per year, and the transmission of financial institutions can promote the reduction of social comprehensive financing costs.

　　Dong Ximiao, the chief researcher of China Merchants Finance, believes that from an international perspective, the global economic prosperity has declined in the second half of 2021, and rising energy prices and tight supply chains have restricted the economic recovery of various countries.

From a domestic perspective, my country's economic recovery is not stable, consumption recovery is weak, and investment growth is slower than expected.

At the same time, there are structural contradictions in economic recovery, and it is still difficult for some sectors and small, medium and micro enterprises.

　　"The central bank's comprehensive reduction of RRR at this time is very necessary and timely. It will help stabilize the confidence and expectations of market entities, promote the steady and continuous recovery of the real economy, and help enterprises out of difficulties and healthy development." Dong Ximiao said.

Bring benefits to the property market and the stock market

　　In the second half of the year, the property market was running cold, and the new mutant Omi Keron brought uncertainty to the capital market.

By the end of the year, in the context of the Central Economic Work Conference's emphasis on "stabilizing the word", experts analyzed that the abundant market liquidity brought about by the "reduced reserve ratio" would benefit the property market and capital market to a certain extent.

　　Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, said that subsequent market participants, including real estate, will have more room for loans and greater convenience when they come into contact with banks.

The RRR cut will ease the financial pressure of real estate companies more quickly, which has a positive effect.

Data map: Shareholders are watching the stock market while shaking their fans.

Photo by Wu Junjie issued by China News Service

　　In the stock market, since the central bank announced the RRR cut on December 6, the market has emerged from a sustained upward trend, and the Shanghai stock index once rushed above the 3,700 mark.

Pan Helin, executive dean of the Digital Economy Research Institute of Zhongnan University of Economics and Law, believes that the RRR cut has brought liquidity to the stock market and also brought confidence to investors.

　　The Central Economic Work Conference proposed that the registration system for stock issuance will be fully implemented in 2022.

Pan Helin believes that under the current registration system of my country's stock market, IPOs are gradually normalizing. After the Beijing Stock Exchange was launched, the number of stocks in the capital market has increased. Therefore, maintaining a certain amount of liquidity is conducive to the stability of the capital market and can stabilize the stock market. Pass the liquidity dry season at the end of the year.

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