1. Macro important news and events:
In order to support the development of the real economy and promote the steady decline of comprehensive financing costs, the people’s Bank of China decided to reduce the deposit reserve ratio of financial institutions by 0.5 percentage points on December 15, 2021 (excluding financial institutions that have implemented the 5% deposit reserve ratio). After this reduction, the weighted average deposit reserve ratio of financial institutions is 8.4%, releasing 1.2 trillion funds.
The Political Bureau of the CPC Central Committee held a meeting to analyze and study the economic work in 2022. The meeting stressed that next year’s economic work should be stable and seek progress while maintaining stability. Macroeconomic policies should be sound and effective, and we should continue to implement an active fiscal policy and a prudent monetary policy. Active fiscal policies should improve efficiency and pay more attention to accuracy and sustainability. Prudent monetary policy should be flexible and appropriate, and maintain reasonable and sufficient liquidity. We will implement the strategy of expanding domestic demand, promote the sustained recovery of consumption, actively expand effective investment and enhance the endogenous driving force of development. Micro policies should stimulate the vitality of market subjects. We should strengthen the protection of intellectual property rights. Structural policies should focus on unblocking the national economic cycle, improving the core competitiveness of the manufacturing industry and enhancing the resilience of the supply chain.
