By mid-April, the central bank turned over 600 billion yuan to the central finance. Experts believe that——

　　Balanced profits go directly to market players to boost the economy

　　The latest data released by the People's Bank of China shows that since the beginning of this year, the People's Bank of China has increased its liquidity investment. In order to support the accelerated implementation of tax rebates for small and micro enterprises, the People's Bank of China has made efforts to speed up the transfer of surplus profits to the central government. As of mid-April 600 billion yuan has been turned over, mainly for tax refunds and transfer payments to local governments, which is equivalent to 600 billion yuan in base currency, which is basically the same as a 0.25 percentage point reduction in the overall reserve ratio.

On April 15, the People's Bank of China announced that it would cut the reserve requirement ratio by 0.25 percentage points in an all-round way, and would invest another 530 billion yuan in long-term funds.

　　Wang Yiming, a member of the Monetary Policy Committee of the People's Bank of China, said in an interview that since 2022, facing the triple pressure of demand contraction, supply shock, and weakening expectations, the People's Bank of China will take the lead and take multiple measures to support my country's economic operation in a reasonable range. .

　　In order to increase liquidity supply, on April 15, the central bank decided to cut the RRR by 0.25 percentage points, releasing a signal of steady growth in total credit and promoting financial institutions to expand credit supply. At the end of March, the growth rates of M_2 and social financing increased respectively compared with the end of the previous year. 0.7 percentage points and 0.3 percentage points to 9.7% and 10.6%; market interest rates were guided to fall by 0.1 to 0.15 percentage points, driving the first quarter corporate loan interest rate to drop by 0.21 percentage points year-on-year to 4.4%, the lowest since statistical records began; Supporting large-scale structural monetary policy tools, launching more sustainable and market-oriented structural monetary policy tools such as inclusive small and micro loan tools, increasing financing for small, medium and micro enterprises; keeping the RMB exchange rate basically stable at a reasonable and balanced level.

　　It is particularly noteworthy that the central bank also has a powerful measure this year, turning over the balance of profits in recent years to the government of more than 1 trillion yuan, equivalent to 1.1 trillion yuan in base currency, which reflects the coordination of monetary policy and fiscal policy, which is conducive to improving Vibrate the economy and stabilize the macroeconomic market.

　　"The central bank's turnover of surplus profits is conducive to helping enterprises to bail out, stabilize employment and protect people's livelihood." Wang Yiming said that the central bank's surplus profits are mainly used for tax rebates and increased transfer payments to local governments, directly to the real economy, and effectively increase the number of "economic entities in the hands of" "Real money and silver", support to help enterprises to bail out, stabilize employment and protect people's livelihood.

The People's Bank of China has handed over more than one trillion yuan of accumulated profits in recent years, which strongly supports the significant increase in available financial resources this year, and improves the growth level of fiscal budget expenditures, which will play an important role in stabilizing growth.

　　Wang Yiming believes that the effect of the central bank turning over profits is better than reducing the reserve ratio, which is conducive to boosting effective demand.

The turn-over of profits from the central bank not only invested more than 1 trillion yuan in base currency, but also boosted the growth rate of M_2 by about 0.5 percentage points.

The profits handed over by the central bank go directly into the hands of enterprises and residents after fiscal expenditure, which improves the balance sheets of residents and enterprises and boosts effective demand.

From the effect point of view, the profit turned over by the central bank is better than the RRR cut.

Although the liquidity invested by the central bank’s profits is equivalent to a 0.5 percentage point reduction in the RRR, the RRR cut is to increase the available funds of commercial banks, and does not necessarily bring credit directly. It will actually increase the income of market entities from economic activities, stimulate the vitality of micro entities, and increase support for market entities.

　　"The central bank's balance and profit payment progress is ahead of schedule, and it will increase its support for the real economy." Wang Yiming said that the balance of profits to be turned over in 2022 also includes previous years' profits, which has increased support for stable growth this year, reflecting the cross-cycle policy design. .

In order to support the accelerated implementation of tax rebates for small and micro enterprises, the People's Bank of China has made efforts to speed up the transfer of surplus profits to the central government. As of mid-April, 600 billion yuan has been handed in, which is basically the same as a 0.25 percentage point reduction in the overall RRR.

In response to the new downward pressure on the economy, the PBC's balance of profits will be turned in ahead of schedule, and the tax rebate needs to be paid in a timely manner. It will cooperate with other monetary policy operations to effectively maintain a reasonable and sufficient liquidity, and the pulling effect on the economy will be further manifested.