Macro comments
On February 22, the State Council Information Office held a press conference on fiscal reform and development. Liu Kun, Minister of finance, said at the press conference that the special bonds of local governments had been reasonably arranged, and 1.46 trillion yuan had been issued in advance at the end of last year. 484.4 billion yuan had been issued in January, accounting for 1 / 3 of the quota issued in advance, all of which were used in key areas such as transportation, municipal administration, industrial park infrastructure, affordable housing projects and so on. （Wind）
Comments: stabilizing investment will become the focus of work at present and for some time to come. With the accelerated implementation of major projects and the strengthening of capital and other security, the growth rate of infrastructure investment will pick up and become an important driving point to drive investment growth. The accelerated availability of special bond funds can promote the rapid start of investment projects, promote the growth of infrastructure investment, and then stabilize the macro-economy. In 2021, China issued 36.4 billion yuan of public REITs for infrastructure, which has achieved success and good demonstration effect. It is necessary to increase the financing scale in the future. Considering China’s huge infrastructure stock, the annual financing scale has a large growth space in the medium and long term, or it may become a potential source of incremental infrastructure funds.
Key macro developments
[1] Minister of Finance Liu Kun: on the basis of 1.1 trillion yuan last year, more large-scale tax cuts and fee reductions will be implemented this year, and market players will have more sense of gain; Maintain appropriate expenditure intensity, improve expenditure accuracy, and do not sprinkle “pepper”; Strengthen and improve local financial and economic order and make financial and economic discipline an untouchable “high-voltage line”. （Wind）
[2] after many places reported that the down payment ratio of housing loans was reduced, the housing loan interest rate also decreased. The six major banks of Industrial And Commercial Bank Of China Limited(601398) , Agricultural Bank Of China Limited(601288) , Bank Of China Limited(601988) , China Construction Bank Corporation(601939) , Bank Of Communications Co.Ltd(601328) , Postal Savings Bank Of China Co.Ltd(601658) lowered the housing loan interest rate in Guangzhou yesterday. Among them, the preferential approval interest rate for the first house was reduced to 5.4% from the previous 5.6%, and the preferential approval interest rate for the second house was reduced to 5.6% from the previous 5.8%. (Securities Times)
