1. Central bank: one year’s LPR quotation was lowered by 5bp, focusing on the effect of “wide credit”. On December 20, the people’s Bank of China authorized the national interbank lending center to announce, On December 20, 2021, the quoted interest rate (LPR) in the loan market was 3.8% for one year and 4.65% for more than five years. The one-year LPR quotation was reduced by 5bp, and the five-year LPR quotation remained unchanged, which basically met the market expectations. The effect of the current policy on wide currency and credit is relatively mild. How do the subsequent markets understand this “interest rate reduction” , it may depend on the order of broad money and credit: if credit picks up, the market may tend to think that, The reduction of LPR can reduce the financing cost of enterprises smoothly – the financing demand (risk preference) of enterprises increases – the central bank does not need to cut interest rates to achieve the effect of wide credit; if the credit continues to weaken, the market will expect the interest margin of commercial banks to narrow – the willingness of banks to broaden credit – the necessity of the central bank to cut interest rates will increase.
2. China Banking and Insurance Regulatory Commission: promote the specialization of pension insurance institutions and focus on the main business of pension. On December 24, The CBRC issued the notice on regulating and promoting the development of pension insurance institutions (hereinafter referred to as the notice) to promote the professional development of pension insurance companies and pension management companies It makes detailed specifications for pension insurance institutions in five aspects: development orientation, business direction, risk isolation, rectification and strengthening supervision, emphasizes the development orientation of professional pension financial institutions, and requires them to focus on business fields with pension attributes such as commercial pension insurance, enterprise (occupational) pension fund management and pension security management.
3. CSRC: regulate the overseas listing of enterprises and clarify the regulatory red line. On December 24, The CSRC promulgated the administrative provisions of the State Council on the overseas issuance and listing of securities by domestic enterprises (Draft for comments) and the administrative measures for the filing of overseas issuance and listing of securities by domestic enterprises (Draft for comments) , solicit opinions from the public. The new regulations require domestic enterprises to uniformly implement the scope of filing management for direct and indirect overseas listing activities, clarify the red line of Overseas Listing Supervision, and point out that they are not allowed to go overseas listing under the circumstances of endangering national security, major ownership disputes and illegal and criminal acts, but further relax the restrictions on Issuing objects and currencies.
4. Central bank: give full play to the dual functions of aggregate and structure of monetary policy tools. On December 24, The fourth quarter (95th) regular meeting of the monetary policy committee of the people’s Bank of China in 2021 was held in Beijing. Compared with the third quarter regular meeting of monetary policy, the meeting proposed for the first time to “give full play to the dual functions of aggregate and structure of monetary policy tools” and “structural monetary policy tools should actively ‘Add’ and make accurate efforts” , it is pointed out that the starting points of structural monetary policy tools are small and micro enterprises, scientific and technological innovation and green development, which is consistent with the previous formulation of the meeting of the Political Bureau of the CPC Central Committee and the central economic work conference.
