CITIC Mingming: Use macro tools such as reserve requirement ratio cuts and interest rate cuts to maintain stable macro liquidity

CITIC Securities Co., Ltd. Chief Economist Mingming believes that since the establishment of swap convenience and stock repurchase increase re-loan, the liquidity of China's equity market has remained abundant, significantly boosting market confidence, and investors' risk appetite remains at a high level. "From the perspective of policy practice, these two capital market support tools have a strong effect on boosting market performance and strengthening investor confidence." Mingming believes that in the future, the People's Bank of China can further increase its focus on the liquidity of the equity market, stabilize market operations through new tools; at the same time, it should implement the monetary policy's tone of "moderate easing," using total tools such as reserve requirement ratio cuts and interest rate reductions to maintain macro liquidity stability. (Securities Daily)