601995

03908

<p>CICC analysis believes that recent adjustments in monetary policy and financial regulatory reforms have positively impacted market expectations, with expectations for a continued rebound in the A-share market. The central bank may expand its balance sheet through repurchase agreements and purchase of government bonds to increase base money supply. At a press conference on September 24th, the central bank announced a series of policies, including lowering the reserve requirement ratio and reducing mortgage rates to support high-quality economic development</p>

- On September 24, a press conference was held to announce a series of monetary policies aimed at supporting high-quality economic development, including a 0.5% reduction in the reserve requirement ratio and a decrease in the 7-day reverse repo rate from 1.7% to 1.5%.  
- These measures are expected to alleviate the financial burden on the real economy, with estimated annual savings of approximately 1.3 trillion yuan in interest payments.  
- The policies are designed to enhance liquidity, support the stock market, and improve investor confidence, potentially leading to a more stable economic outlook.

CICC interprets the financial combination, convenient swaps may lead to the central bank expanding its balance sheet