"King's bomb!
Lowering reserve requirement ratio and interest rates, buying houses and stocks, the central bank is really going all out!"
"Bull back!
Speed return!"
"I heard from a colleague that the bull market is coming, I don't know if it's too late to open an account tomorrow."
On the interactive platform of financial websites, investors are enthusiastically discussing the stock market on September 24th.
Today, A-shares have ushered in a long-awaited surge.
The Shanghai Composite Index returned to 2,800 points, closing at 2,863.13 points, up 114.21 points from the previous trading day, a rise of 4.15%, the largest single-day increase in more than four years; the Shenzhen Component Index closed at 8,435.70 points, up 352.32 points, a rise of 4.36%; the ChiNext Index closed at 1,615.32 points, up 84.81 points, a rise of 5.54%.
Many investors are posting their stock account gains for today, discussing the stock market trend for tomorrow, and some people have even started shouting "the bull market is coming!"
The A-share market has not been so boiling for a long time.
This time, the big reversal of the market came from the unexpected regulatory policy strong heart injection, especially the central bank rarely took out a strong combination of measures to boost the stock market.
On the morning of September 24, the governor of the People's Bank of China, Pan Gongsheng, the director of the State Administration of Financial Market Supervision, Li Yunze, and the chairman of the China Securities Regulatory Commission, Wu Qing, respectively, made important statements at the press conference held by the State Council Information Office, and A-shares ushered in a series of policy benefits such as reducing the existing housing loan interest rate, further lowering the reserve requirement ratio, vigorously developing equity funds, and arranging medium and long-term funds to enter the market.
The market is boiling on September 24, the total turnover of the Shanghai and Shenzhen stock markets for the whole day is 971.342 billion yuan, an increase of 42.05 billion yuan from the previous trading day, with a significant increase in trading volume.
Among them, the Shanghai market turnover is 44.2795 billion yuan, and the Shenzhen market turnover is 52.8547 billion yuan.
More than 5,100 individual stocks in the two cities have risen.
Looking at individual stocks, Kweichow Moutai (600519.SH) has the highest turnover, which is 13.297 billion yuan; followed by Orient Wealth (300059.SZ), Changshan North Ming (000158.SZ), Ningde Times (300750.SZ), CITIC Securities (600030.SH), with turnovers of 9.422 billion yuan, 7.422 billion yuan, 6.892 billion yuan, and 5.812 billion yuan respectively.
Looking at the industry, the big finance line has risen across the board, and individual stocks have set off a wave of limit rises, with Haida Shares (000567.SZ), Aijian Group (600643.SH), Aviation Industry Finance (600705.SH), Minmetals Capital (600390.SH) and others have all risen to the limit.
The securities stocks also rose across the board, with Pacific Securities (601099.SH), Jinlong Shares (000712.SZ) rising to the limit, and Tianfeng Securities (601162.SH) approaching the limit.
In addition, the FTSE China A50 also saw a big rise, closing up more than 6% at 5 p.m. on September 24.
Zhang Xiaomu, the stock fund manager of Fidelity Fund Management (China) Co., Ltd., said that the central bank's reserve requirement ratio reduction, interest rate reduction, and existing housing loan interest rate reduction, the creation of new policy tools to support the development of the stock market, these series of policy measures are not only positive for the liquidity support of the real estate and stock markets, but also more deeply, it is a good start to reverse the downward trend of China's monetary flow speed.
Especially the relevant policies of the stock market, if smoothly implemented, will be able to activate some idle or idle funds through the medium of the stock market, thereby improving China's effective monetary flow speed.
Zhang Xiaomu further said that if the wealth effect of the stock market is repaired, it will drive the investment sentiment of a broader field, thereby improving the employment and income expectations of residents, promoting the recovery of consumption, and ultimately promoting China's economic growth rate to return to the long-term trend line.
Due to the huge size of China's economy and inertia, a series of policy combinations are needed to be pressed forward in order to achieve the aforementioned positive policy effects.
Therefore, market participants will continue to observe the introduction and implementation of subsequent policies on the basis of the expected improvement on September 24.
The central bank released three "big moves".
At the press conference on September 24, Pan Gongsheng announced that the central bank will introduce several policies: first, to reduce the reserve requirement ratio and policy interest rates.
In the near future, the reserve requirement ratio will be reduced by 0.5 percentage points, providing about 1 trillion yuan of long-term liquidity to the financial market; within this year, depending on the situation of market liquidity, it may further reduce the reserve requirement ratio by 0.25-0.5 percentage points.
Reduce the central bank's policy interest rate, that is, the 7-day reverse repo operation interest rate is reduced by 0.2 percentage points, from the current 1.7% to 1.5%, and at the same time guide the loan market quotation interest rate and deposit interest rate to move down synchronously, maintaining the stability of the net interest margin of commercial banks.
Second, to reduce the existing housing loan interest rate and unify the minimum down payment ratio of housing loans.
Guide commercial banks to reduce the existing housing loan interest rate to the vicinity of the newly issued loan interest rate, and the average decline is expected to be about 0.5 percentage points.
Unify the minimum down payment ratio of the first and second housing loans, and reduce the national level of the second housing loan minimum down payment ratio from the current 25% to 15%.
Increase the support ratio of the central bank's funds for the 30 billion yuan of guaranteed housing loans created by the People's Bank of China in May from the original 60% to 100%, enhancing the market-oriented incentives for banks and acquisition entities.
Extend the two policy documents of the business property loans and the "Financial 16 Articles" that will expire before the end of the year to the end of 2026.
The third is to create new monetary policy tools to support the stable development of the stock market.
The first item is to create a swap convenience for securities, funds, and insurance companies, supporting qualified securities, funds, and insurance companies to obtain liquidity from the central bank through asset pledge, and this policy will greatly increase the institutions' ability to obtain funds and increase the ability to increase stocks.
The second item is to create a special re-lending for stock buybacks and increases, guiding banks to provide loans to listed companies and major shareholders to support stock buybacks and increases.
Pan Gongsheng said that these policy measures will be published on the central bank's website in the near future as policy documents or announcements.
At the press conference, a reporter asked: What are the main considerations for creating a swap convenience for securities funds and insurance companies, and a special re-lending to support listed companies and major shareholders to increase stocks?
How will the central bank carry out operations?
Pan Gongsheng replied that this is the first time the central bank has innovated structural monetary policy tools to support the capital market.
The first tool is the swap convenience for securities, funds, and insurance companies.
This work supports qualified securities, funds, and insurance companies, and these institutions will be determined by the Securities Regulatory Commission and the Financial Regulatory General Administration according to certain rules, and can use their bonds, stock ETFs, and components of the Shanghai and Shenzhen 300 as collateral to swap into high-liquidity assets such as government bonds and central bank bills from the central bank.
The funds obtained by institutions through this tool can only be used to invest in the stock market.
Pan Gongsheng revealed that the first phase of the swap convenience operation is 50 billion yuan, and the scale can be expanded in the future depending on the situation.
"I said to Chairman Wu Qing (of the Securities Regulatory Commission), as long as this thing is done well, there can be another 50 billion yuan in the future, or the third 50 billion yuan, our (attitude) is open."
Pan Gongsheng introduced that the second tool is the stock buyback and increase re-lending.
This tool guides commercial banks to provide loans to listed companies and major shareholders for stock buybacks and increases.
The People's Bank of China will issue re-lending to commercial banks, and the re-lending interest rate is 1.75%.
When commercial banks handle loans for customers, the interest rate will be increased by 0.5 percentage points, which is 2.25%.
The first phase is 30 billion, and if this work is done well, it can be added later.
This is the first time the central bank has introduced such a large-scale targeted capital for the capital market.
Not only that, but in response to the reporter's question about the creation of the balance fund, Pan Gongsheng said "under study."
This brings another "strong heart injection" to the market.
The Securities Regulatory Commission is also continuing to promote the introduction of long-term funds into the market.
Wu Qing said that the Securities Regulatory Commission will accelerate the reform of the investment side, promote the construction of a "long money long investment" policy system, plan to issue guidance on promoting long-term funds into the market, and will further improve the policy toolbox to guard against the bottom line of risk; it will issue six measures to promote mergers and acquisitions, work with all parties to unblock the "raising, investing, managing, and withdrawing" of private equity venture capital funds; and focus on protecting the legitimate rights and interests of small and medium investors.
Institutions are generally optimistic about the series of measures released by the regulatory authorities today to support high-quality development.
After the financial support, the institutions have been "clapping", and the research reports are filled with a "bull market" atmosphere.
Chen Guo, the chief analyst of Zhongxin Jianzou Strategy, believes that today the central bank and the Securities Regulatory Commission have opened the prelude to the introduction of heavy policies, looking forward to the future of the A-share market, the market bottom may have been established.
Orient Gold Credit Rating Co., Ltd. believes that the central bank's announcement of interest rate reduction and reserve requirement ratio reduction will play an important role in boosting the total demand of the macro economy.
On the one hand, the reduction of financing costs will directly stimulate consumption and investment demand, effectively play a counter-cyclical regulatory role, and promote the improvement of economic growth momentum; at the same time, it will also alleviate the current macroeconomic "supply is strong and demand is weak" situation, and promote the moderate rise of price levels.
On the other hand, after the central bank has played a policy "combination punch", it will effectively boost market confidence and improve social expectations.
At this stage, this is of great significance for stabilizing growth and stabilizing the real estate market, and achieving the economic growth target of "about 5.0%" set at the beginning of the year.
Guotai Junan pointed out that this combination of loose money and loose credit has effectively bridged the core contradictions of the current market.
On the one hand, after the reduction of the existing housing loan interest rate, the debt burden of the private sector has been greatly reduced, which is helpful to alleviate the risk asset liquidity pressure brought by the rise in default rates; on the other hand, the structural loose credit measures for the stock market are conducive to the moderate rise of long-term bond interest rates, achieving exchange rate stability.Huaan Securities mentioned in its research report that the market is entering a period of rebound opportunities.
It believes that today's policy resonance in currency, real estate, and capital markets is conducive to boosting market risk appetite, bringing a rare period of rebound opportunities.
In particular, the creation of supportive monetary policy tools is helpful in alleviating short-term capital pressure in the capital market, while other real estate relaxation policies, deepening mergers and acquisitions, and market value management guidelines are also expected to bring more structural highlights to the market.
From a medium to long-term perspective, Huaan Securities believes that a reversal trend still requires a change in economic expectations.
In recent years, the overall market has been weak and low, with the core contradiction being the continuous marginal weakening of confidence and expectations for the future economy, and the rounds of macro policies have not completely turned around the market's confidence.
The currency and real estate policies introduced today are also expected to be insufficient to completely reverse the market's economic expectations.
The market's reversal opportunity may still need to wait for more robust policy introductions or more positive trend signals in the fundamentals.
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