[New Tang Dynasty News, Beijing time, November 24, 2022]A few days ago, Premier Li Keqiang of the State Council of the Communist Party of China issued a signal to lower the RRR at the executive meeting of the State Council. Subsequently, the CCP officially threw out 16 measures to support the development of the real estate market, triggering interpretation from the outside world.
The CCP’s official media, Xinhua News Agency, reported that on November 22, Li Keqiang presided over an executive meeting of the State Council, calling for “increasing financial support for the real economy”, guiding banks to moderately give up existing loans to inclusive small and micro enterprises, and using currencies such as RRR cuts in a timely manner. Policy tools, “maintain reasonable and sufficient liquidity”.
At the same time, the meeting also mentioned that we should promote the accelerated construction of major projects to drive social capital investment including private enterprises; accelerate the implementation of equipment upgrading and transformation; stabilize and expand consumption, etc.
Hong Kong’s “Economic Daily” reported on the 24th that according to past experience, when Li Keqiang mentioned the RRR cut in the executive meeting of the State Council, the central bank will announce the reduction of the bank deposit reserve ratio. The last time was on April 13 this year, the National Standing Committee meeting stated that “the monetary policy tools such as RRR cuts will be used in a timely manner”, and the central bank lowered RRR two days later.
According to Juheng.com, Liu Peiqian, chief China economist of NatWest Group, predicted that the central bank of the People’s Republic of China will cut the deposit reserve interest rate by 25 or 50 basis points across the board, which is in line with the central bank’s expectation of another cut before the end of the year, and it may be as soon as Friday (25th) as the State Council has signaled this policy move.
At the same time, the Central Bank of the Communist Party of China reported on November 23 that the Central Bank and the China Banking and Insurance Regulatory Commission issued the “Notice on Doing a Good Job of Financial Support for the Steady and Healthy Development of the Real Estate Market”. The notice issued a total of 16 measures, requiring financial institutions to fully support the real estate industry. It was interpreted by the industry as “16 measures to save real estate finance”.
The “16 Financial Measures” include stabilizing loans for real estate development and credit for construction companies, supporting development policy banks in providing special loans for “guaranteed housing”, providing financial support for real estate project mergers and acquisitions, increasing financial support for housing leasing, etc. .
According to the “Securities Times” report, on November 23, a number of state-owned banks signed strategic cooperation agreements with a number of real estate companies. Among them, the Bank of China will provide Vanke with an intentional credit line of no more than 100 billion yuan or the equivalent foreign currency, the Bank of Communications will provide Vanke with an intentional comprehensive credit line of 100 billion yuan, and the Bank of Communications will also provide Midea Real Estate with no more than 20 billion yuan. RMB intentional credit line.
In addition, the Agricultural Bank of China held a signing ceremony for a bank-enterprise strategic cooperation agreement with five real estate companies including China Shipping Development, China Resources Land, Vanke, Longfor, and Gemdale.
Ding Zuyu, executive director of Shanghai E-House Real Estate Research Institute, said that the core of the liquidity support policy is still “stabilizing real estate”. With the support of favorable policies, the financing environment of real estate enterprises is expected to improve, especially the living environment of private real estate enterprises will also usher in a change.
According to the “Financial Express” report, Citibank also pointed out that the notice provides the most comprehensive support measures to date for the troubled real estate market, marking the regulator’s policy stance on developers from “imposing restrictions” to “providing support.” major transformation.
Fund blogger “Aspirations Capital-Zhang Jianan” posted on Weibo, “With the release of the 16 financial policies, the ‘bad’ expectations of banks and insurance industries that have been affected by real estate have completely dissipated! As the saying goes, saving real estate , is to save the bank, to save the bank, is to save the economy!”
“Dian Sa”, the chairman of Zhejiang Liyang Industrial Co., Ltd., said, “It’s too big to be right, it changes from day to day, and it’s capricious.”
China’s economy continues to decline. Han Baojiang, professor and director of the economics teaching and research department of the Central Party School of the Communist Party of China, previously said in an online conference that the Chinese economy is facing “inevitable” and “unprecedented pressure”, especially the COVID-19 pandemic in China. time to end.
Economists pointed out that the CCP’s zero-clearing and epidemic prevention policies have plunged China’s economy into unprecedented difficulties. Previously, Lin Changnian, CEO of Hong Kong Zhiyi Oriental Securities Co., Ltd., told Voice of America that the zero-clearing policy would be a nuisance to people and money, and the effect is low. If the restrictions are not loosened as soon as possible, China’s GDP may not be able to maintain 3% this year.
(Comprehensive report by reporter Tang Zheng/Editor in charge: Li Quan)
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