The favorable policies announced by the central bank today are absolutely brutal! In my 28 years in the A-share market, I've never seen such aggressive good news—institutions can now borrow from the 'central bank mom' if they lack funds to buy stocks! Eligible securities firms, funds, and insurance companies can use assets like bonds, stock ETFs, and CSI 300 constituent stocks as collateral to exchange for highly liquid assets such as government bonds and central bank bills from the central bank. This will significantly enhance institutions' ability to obtain funds and increase their stock holdings. The initial scale of the swap facility is 500 billion yuan, and it may be expanded in the future depending on the situation. 'If it works well, there could be a second 500 billion, a third 500 billion.'

The funds obtained through this tool can only be used to invest in the stock market. For example, a fund company holds CSI 300 constituent stocks but is forced to sell them due to investor redemptions. Selling the stocks leads to a decline in the fund's net value, which in turn triggers more redemptions—a vicious cycle. Now, this fund company can pledge some of its stocks to the central bank in exchange for highly liquid assets like government bonds and central bank bills. These assets can then be liquidated into cash, allowing the fund manager to meet redemption demands without selling stocks. The fund company might even use the cash to increase its positions, effectively breaking the vicious cycle of stock sell-offs. Additionally, banks are encouraged to provide loans to listed companies and major shareholders for stock buybacks and increased holdings. The central bank will offer relending to banks with 100% funding support at an interest rate of 1.75%. The initial quota is 300 billion yuan, with potential expansions based on usage. This policy applies to listed companies of all ownership types.

When a listed company sees its stock price at a low level and wants to buy back shares but lacks funds, it can now take out a bank loan to increase holdings or repurchase its own shares. Ultimately, the central bank will settle the payment. The obvious goal of this move is to rescue the market and reverse the continuous decline in A-shares. It aims to boost market confidence, enhance liquidity, and help the A-share market quickly rebound from the bottom. At such historically low levels in the A-share market, if I were an institutional investor, I would immediately seek loans from the central bank to increase my positions. This would allow my institution to outperform others and achieve substantial investment returns.

If I were a major shareholder of a listed company, I would also consider borrowing from banks to increase holdings of my company's shares during the market bottom. The central bank is set to inject massive liquidity into the A-share market, and as the tide rises, the market bottom has already formed. Driven by this super-positive news, A-shares surged today. The SSE 50 Index rose sharply, with the most oversold stocks seeing the biggest gains. Kweichow Moutai soared 8.8%, and TCL Zhonghuan hit the limit-up! This policy clearly demonstrates the central bank's firm resolve to stabilize the A-share market. It’s foreseeable that if the A-share market remains sluggish, the government will roll out even stronger policies to support it. As an ordinary investor, hesitating or staying bearish at this point would be unwise. I will stick to my strategy of continuously increasing positions below 3,000 points.