Government Policy A Shares "Mad Cow" Was Urged To Catch Up

Recently, I have been emphasizing that the keynote of the "policy market" of the domestic stock market has not changed at all.

As long as there is a government policy, whatever policy will become the reason for stock market speculation.

For example, we should speed up the examination and approval of capital construction projects, establish new free trade zones and the strategy of "one belt and one way". However, such policies are only small messages, but they are only reasons for short-term speculation or speculation in the industry. The real promotion of stock market madness is often an increase in capital flows caused by the central bank's monetary policy.

For example, since the central bank cut interest rates in November 22nd, A shares have soared and record volume.

In the nearly month since the central bank cut interest rates, the Shanghai composite index has soared by 27%.

However, the frenzy of the stock market will also give investors some worries, and the market is ready to adjust at any time.

Therefore, as long as investors feel that there is a policy change against the stock market, the market will be adjusted.

For example, in the early December and two days before last week, the Shanghai composite index had a short adjustment.

Last week Tuesday and Wednesday, the Shanghai composite index fell by 3% and 2% respectively.

However, investors will not withdraw from the market because of this adjustment. Instead, they are waiting for the government's new policy, coupled with the experience of strong rebound after the adjustment in early December. So last Thursday and Friday, the Shanghai composite index increased by 3.4% and 2.8% respectively.

Ho also, the market smells that the central bank will introduce new policies.

No, the central bank announced on Saturday (27) that the deposit reserve ratio (RRR) of non bank financial institutions should be set to zero at the 2015 level.

The scope of interbank deposits includes securities and paction settlement deposits of depository financial institutions, and deposits of non deposit banks.

Some agencies estimate that after the central bank adjusted the deposit and loan statistics, the average deposit and loan ratio of commercial banks decreased by 5%, of which the Societe Generale Bank dropped by 11%.

That is, the policy adjustment is equal to the release of about 55 thousand RMB credit line.

This will not only increase the bank's credit, but also ease the current market liquidity.

That is to say, the introduction of this policy is of great importance to large banks such as agricultural and industrial construction, because the loan to deposit ratio is not high enough, and loanable funds are also abundant.

But for that reason

Small or medium banks, which are higher or especially high and have more deposits in the same industry, are a great advantage.

This will substantially increase the loanable funds of these banks and allow them to get out of difficulties.

There are institutional calculations that have been pointed out.

In addition, insurance companies that have large deposits and banks can obtain higher deposit rates because of the policy, which is also a great benefit.

As for the funds absorbed by the monetary fund represented by the balance treasure, it was previously used to lend to commercial banks through interbank deposits.

Because such Internet tools are able to grab deposits with commercial banks, they do not pay deposit reserves for their interbank deposits.

Because of this, for the sake of fair competition in the market, the market has been circulating earlier that such deposits should be included in the management of general commercial bank deposits, that is, the deposit reserve must be paid.

However, these central banks require that the deposit reserve for the above interbank deposits be temporarily zero, or do not pay the deposit reserve.

This makes the balance of the Internet Financial treasure exist in the heart for a long time to fall, and this policy is also very beneficial to Internet finance.

Of course, it is certainly not sure whether the loans of commercial banks will increase, and whether these funds will enter the stock market directly.

But when commercial banks increase a large amount of loanable funds, they will surely change the current tense situation of market liquidity and make the credit environment more relaxed.

Especially when the lending rate of commercial banks is fully liberalized and deposits are subject to certain control, loanable funds increase not only for enterprises

The more convenient it is, the lower the cost of financing.

This is not only conducive to solving the problem of financing difficulties of SMEs, but also helps to alleviate those companies with heavy liabilities.

It can be seen that this Chinese style.

Although it is not as common as usual to cut interest rates and reduce monetary policy, the use of monetary policy conventional pricing tools and quantitative tools is not like the Central Bank of Europe and the United States adopting an unconventional quantitative easing policy, but the actual effect can be the same, that is, to make the credit market more relaxed under the conditions of China's financial market. This is why the market is expected to have such a great effect on the policy.

However, because China's financial market environment and system are different from those of Europe and the United States, if Europe and America think and measure only, their expectations and actual results may not be consistent.

The policy will only push the A share "mad cow" as expected, but whether the "mad cow" has real economic support will be tested by time.