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PBOC Vice Head: Refinancing for Stock Repurchases & Increases Reinforces Mkt Confidence; Stock Mkt In Steady Uptrend
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Zhu Hexin, Vice Governor of the People's Bank of China (PBOC) and Director of the State Administrative of Foreign Exchange (SAFE), said at the Global Financial Leaders' Investment Summit that the PBOC has lowered the reserve requirement ratio (RRR) by 0.5 ppts since the end of September, releasing about RMB1 trillion of long-term liquidity to the market. Meanwhile, the 7-day reverse repo has its interest rate been trimmed by 0.2 ppts, the medium-term lending facility (MLF) interest rate has been cut by 0.3 ppts and the loan prime rate (LPR) has been reduced by 0.25 ppts, recaptured Zhu, saying all of these further reduced the cost of financing for enterprises and credit for residents, which is conducive to promoting investment and consumption. The measures related to real estate policy have chopped the total interest expenses of households by RMB150 billion per year on average, benefiting 50 million households. With the gradual implementation and results of the relevant policies, there have been some positive changes in the real estate market. The recent increase in the number of housing viewings and transactions in the market proves that the effect of the policies is gradually being realized. Zhu pointed out that the PBOC has launched the Securities, Funds and Insurance Companies Swap Facility (SFISF) to support the market development, while the refinancing for stock repurchases and increases has been activated with concrete results. After the release of the new measures, market confidence in mainland China and Hong Kong stock markets has been strengthened, and the financial markets, including the stock, bond and FX markets, have reacted more positively recently at a stage of stabilizing and improving. AAStocks Financial News |
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