How Much Does The Central Bank'S Credit Assets Plunder Seven Trillion?

All kinds of rescue measures fail to see the effect, which will force the central authorities to move forward, so that there will be one way left: "drain water"! The central bank's credit assets pledge will be draining seven trillion, and the Chinese style QE will come.

Since the cancellation of the loan to deposit ratio has not yet started, many people in the industry have begun to predict that about 7 trillion of the credit funds will be released.

Today, the loan to deposit ratio has been abolished. 7 trillion, when the credit funds come to terms, the depreciation of the RMB is nearly 2%, so your money is stolen.

In fact, this is not the most important thing on the weekend. The most important thing is to extend credit assets pledge and refinance. This is the real currency.

Coming!

In order to implement the spirit of the State Council on increasing reform and innovation and supporting the real economy, according to the request of the people's Bank of China in 2015, the people's Bank of China launched a pilot project in 9 provinces and cities in Shanghai, Tianjin, Liaoning, Jiangsu, Hubei, Sichuan, Shaanxi, Beijing and Beijing in the early stage of the pilot project of credit assets pledge refinancing in Shandong and Guangdong.

The central bank's internal rating of the part of the loan enterprises of the local legal person financial institutions in the pilot area shall be carried out by the branches of the people's Bank of China in the pilot area, and the credit assets with the credit rating results will be included in the scope of qualified collateral acceptable by the people's Bank of China for refinancing.

The pilot project of credit assets pledge refinancing is an important measure to improve the central bank's collateral management framework, which is conducive to improving the effectiveness and flexibility of monetary policy operation, helping to solve the problem of relatively inadequate collateral for local corporate financial institutions, and guiding it to expand the "three rural" and small and micro enterprises credit delivery, reduce social financing costs and support the real economy.

"What does that mean? I don't understand."

Yes, the central bank wants this kind of ambiguous effect and feels like a cow.

Have you found that every time the Chinese economy is in trouble, the central bank begins to speak English? Chinese style QE, reverse repo RR, short-term liquidity adjustment SLO, standing loans facilitate SLF, mortgage supplementary loan PSL, medium term lending convenience MLF, mortgage backed securities MBS, interest rate reduction, including the credit assets pledge and refinancing.

It's all out.

The main reason is that Ogawa likes to use a group of economists who came back from the United States. This habit has already started from the president of the appointed bank, and extended to the SFC. Now it is the central bank.

If you don't know what it is talking about, you can only get messy in the wind.

In fact, all these English plations into Chinese are simply two words - scatter money!

What is "credit assets pledge refinancing"?

The so-called credit assets pledge refinancing means that banks can use the existing credit assets, that is, loans that have been released, to go to the central bank to pledge and obtain new funds.

Be similar to

A method of operation.

Very simple, after the commercial bank loans, the loan to the central bank, the central bank closed its eyes to purchase these IOUs, commercial banks will have endless cash in hand.

Of course, the central bank can set up an internal index to control the rhythm of water release.

In this case, the central bank has several regulatory powers: 1, who gives money to whom not to give money; 2, who gives more money and who gives less money; 3, determines which type of "credit assets" can be pledged, mortgaged; 4, the interest rate of refinancing.

It can be seen that the central bank can pfer its preference for loans to commercial banks through such refinancing, and can also pfer its influence on market interest rates to the market through reloan interest rates.

Of course, the staff at all levels of the central bank have also gained huge "discretion".

There is also a clearer interpretation of the financial industry. Credit assets pledge refinancing is essentially credit plus leverage. It belongs to "sub prime mortgage loan": first mortgage one million, after mortgage, it can borrow one million more. Or, "before borrowing one million, it doesn't matter. This debt can be mortgaged to the central bank, let the central bank print money machine to start, and then lend you 1 million (of course, we must make a discount)" no wonder netizens commented: "loan, loan, loan, loan, loan to pass."

The mentality of "central Mom" is actually very contradictory.

Statistics for the three quarter have not yet been released, but the downturn in economic data has overshadowed GDP growth in the three quarter, or for the first time in nearly 25 years or less than 7%.

In October 8th, UBS released the latest research report that it is expected that the upcoming three quarter GDP will drop to 6.6%.

All kinds of rescue measures are not effective, which will force the central authorities to move forward, so that there is a way left: "drain water"! Of course, there are many ways to release water, but it is still on the way, but it is still not possible. Only by increasing the valves or opening more valves, there is no doubt that this Mama does not like to go straight or continuous. Because of the pressure of public opinion, many people will criticize the central government for "returning to the old road to rescue the market in 2009".

Tax cuts can only be done.

Under the current system, when the economy is in recession, the tax burden can only be increased (such as a large number of pre tax and tax inspection). It can not be reduced because the huge government consumption can not be reduced, and there is no room for tax reduction.

What is the impact of the central bank's drainage on the economy?

Securities companies are more cautious in their comments on "China's tiny stimulus and reappearance."

Li Qilin, a fixed income analyst at Minsheng securities, reported that the central bank's pilot project to promote credit assets pledge and refinancing is a slight stimulus to China's reappearance. The total amount is the downward pressure on the real estate and traditional economy. The structure is for economic pformation, that is, by setting different discount rates of credit assets, such as setting up a higher discount rate for small and micro credit assets that meet the requirements of economic pformation, the higher the discount rate of credit assets can get more basic currencies, and provide positive incentives for financial institutions to small, micro, three rural loans.

But this credit assets pledge reloan policy is not a micro stimulation measure, combined with the contents and dynamics of other fiscal policies and monetary policies, which is a heavy stimulus that can not be announced under some strong reasons (not yet stable and perfect). The central government has already known that if we do not take effective measures to hedge down the downward pressure of real estate and traditional economy, it is impossible to achieve growth.

Many netizens seem to be familiar with this policy: "this is not to pack people's mortgage into financial products for sale again? Is that what caused the 07/08 financial crisis? After the subprime mortgage crisis, Obama went down to kneeling in parliament to implement QE, so that everyone could go to see Obama's kneeling photos.

"Credit assets pledge refinancing" will not have a big impact in the short term, but after all, the central bank has opened a channel for releasing water, creating conditions for further efforts in the future.

On the whole, the announcement by the central bank in October 10th is good for the stock market and the real estate market.

Some people think it is an important signal for China's QE to open, which means that there may be several trillion or even one hundred thousand billion level of large water discharge.

The Chinese stock market will also see a super bull market.

We will wait and see what the future will be like.