The central bank： comprehensively lowered the RRR by 0.5% and released 900 billion yuan.

　　Chinanews. com client Beijing, September 6 (Reporter Li Jinlei) has been lowered again! On the 6th, the central bank announced that on September 16th, 2019, the deposit reserve ratio of financial institutions would be lowered by 0.5 percentage point, and about 900 billion yuan would be released. This will bring two advantages.

Data map of China People’s Bank. China News Agency issued Cice Li photo

　　The second comprehensive RRR cut during the year.

　　The central bank decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on September 16, 2019 (excluding finance companies, financial leasing companies and auto finance companies).

　　In addition, in order to promote greater support for small and micro enterprises and private enterprises, the deposit reserve ratio of city commercial banks operating only in provincial administrative areas was reduced by 1 percentage point, which was implemented twice on October 15 and November 15, with a reduction of 0.5 percentage point each time.

　　This is the third RRR cut by the central bank in 2019, and it is also the second comprehensive RRR cut. In January this year, the central bank announced an overall RRR cut of 1 percentage point; In May, the central bank decided to lower the RMB deposit reserve ratio of rural commercial banks serving counties to the level of rural credit cooperatives.

　　Before this RRR cut, the country has released a clear signal. The executive meeting of the State Council held on September 4th explicitly requested that measures to reduce the real interest rate should be implemented quickly, and policy tools such as general RRR reduction and targeted cuts to required reserve ratios should be used in time.

Data map: RMB. Li Jinlei photo

　　Release 900 billion funds

　　How much money will be released this time?

　　According to the central bank, this RRR cut has released about 900 billion yuan of long-term funds, including about 800 billion yuan from the overall RRR cut and about 100 billion yuan from targeted cuts to required reserve ratios.

　　Two big advantages

　　— — Reduce financing costs and support the real economy.

　　Shen Jianguang, vice president and chief economist of JD.COM Digital Technology, told the reporter of Zhongxin.com that private enterprises and small and micro enterprises still face the problem of difficult and expensive financing, and the RRR cut will help guide the downward trend of market interest rates, reduce the financing cost of enterprises and support the development of the real economy.

　　Li Daokui, chief economist of the New Development Bank, told the reporter of Zhongxin. com that at present, developed countries have relaxed their monetary policies one after another. Objectively speaking, the pressure of capital outflow in China is decreasing, so now is a good window of opportunity. "Lowering interest rates appropriately can be transmitted to enterprises and reduce financing costs for enterprises".

　　The central bank said that the RRR cut released about 900 billion yuan, effectively increasing the sources of funds for financial institutions to support the real economy, and reducing the cost of bank funds by about 15 billion yuan per year. The real interest rate of loans can be reduced through bank transmission. Targeted cuts to required reserve ratios is an important measure to improve the policy framework of "three grades and two advantages" with low deposit reserve ratio for small and medium-sized banks, which is conducive to promoting city commercial banks serving the grassroots to increase their support for small and micro private enterprises. These are all conducive to supporting the development of the real economy.

　　— — Benefiting the capital market and boosting the confidence of the stock market

　　Under the influence of the expected RRR cut, the China stock market has performed well recently. This week (September 2-September 6), the Shanghai Composite Index achieved "five consecutive gains" and once regained the 3000-point mark. As of the close of the 6th, the Shanghai Composite Index stood at 2,999.60 points, up 3.93% this week.

　　Shen Jianguang said that the RRR cut is also good for the capital market. With the increase of market liquidity, it will help the stock market to continue to improve steadily.

Stock market data map. China News Service reporter Luo Yunfei photo

　　real-estate market

　　— — It is difficult to welcome "Xiaoyangchun" with limited benefits.

　　Zhang Dawei, chief analyst of Zhongyuan Real Estate, believes that the previous two RRR cuts have brought about a small spring in the property market, and this RRR cut will also lead to a stable real estate market to a certain extent, but it is unlikely that there will be a "small spring" again.

　　Historically, as long as the RRR is lowered, it will be good for real estate and can alleviate the pressure on funds. However, according to Zhang Dawei’s analysis, before the RRR cut, policies have been tightened for real estate for many times, and dams have been built to prevent funds from flowing into real estate. Therefore, in the current situation of tightening the property market policy, the property market has limited benefits.

　　Shen Jianguang also believes that, in fact, the channel for capital to flow into the property market has been basically cut off, whether it is a bank issuing bonds or a trust, so it doesn’t matter much whether the interest rate is low or not.

　　Earlier, the central bank held a symposium on the adjustment and optimization of the credit structure of banking financial institutions, proposing to adhere to the positioning of "houses are used for living, not for speculation", prohibiting consumer loans from being illegally used for buying houses, and strengthening the management of funds flowing into real estate through channels such as bank wealth management and entrusted loans.

Data map: Bank staff count currency. China News Service reporter Zhang Yunshe

　　Will it be lowered in the future?

　　Does the RRR cut mean a change in the orientation of prudent monetary policy?

　　According to the central bank, the RRR cut will hedge against the tax period in mid-September, and the total amount of liquidity in the banking system will remain basically stable. Moreover, the implementation of targeted cuts to required reserve ratios in two stages will also help to release funds in a safe and orderly manner. Therefore, this RRR cut is not flooding, and the orientation of prudent monetary policy has not changed.

　　The central bank will continue to implement a prudent monetary policy, not engage in flood irrigation, pay attention to directional regulation, give consideration to internal and external balance, intensify countercyclical adjustment, maintain a reasonable and abundant liquidity, keep the growth rate of broad money M2 and social financing scale basically matching the nominal GDP growth rate, and create a suitable monetary and financial environment for high-quality development and supply-side structural reform.