The first RRR reduction in 2022 is coming!
On April 15, the central bank announced that it decided to reduce the deposit reserve ratio of financial institutions by 0.25 percentage points on April 25, 2022 (excluding financial institutions that have implemented the 5% deposit reserve ratio). After this reduction, the weighted average deposit reserve ratio of financial institutions is 8.1%. The RRR reduction is a comprehensive RRR reduction, releasing a total of about 530 billion yuan of long-term funds.
So what is the significance of this RRR reduction? What is the long-term logic of this wave of RRR reduction? What is the impact on the stock market and bond market and how to go in the future? Which sectors or relative benefits? The fund manager quickly contacted Fuguo, harvest, Boshi, China Europe, Nanfang, Penghua, Dacheng, China Merchants, Huatai Bairui, Nord, West Lide, Pengyang, Shanghai Investment Morgan, Wanjia, Cathay Pacific, Guohai Franklin, ChuangJin Hexin, HSBC Jinxin, ABC Huili, xingyin, Debang, Ruida and other more than 20 fund companies for interpretation.
this RRR reduction is in line with market expectations
aims to mitigate the economic impact of the epidemic
So why is the RRR reduction at the current time point in line with expectations? Why is it the smallest 25bp in history? What is the impact of this reduction? Several fund companies said that the RRR reduction is in line with market expectations and aims to alleviate the impact of the epidemic on the economy. The impact of the RRR reduction may be limited.
Wells Fargo Fund said that as stated in the central bank’s press conference, overseas interest rate hikes and high inflation are the main reasons for the policy choice of “small step overweight”. In the unstable macro environment, the 25 BP RRR reduction is the “comprehensive solution” of the central bank under the multi-objective constraints of “stabilizing prices, stabilizing exchange rates and promoting economic growth”. At present, the market expects the Federal Reserve to raise interest rates by 50bp in May and start to shrink the table, and the yield of 10Y US bonds will exceed 2.8%. In the context of upside down interest rate spread between China and the United States, although the central bank “focuses on me”, it will indeed be constrained. In terms of inflation, on the one hand, the inflationary pressure will indeed reduce the policy space, but the central bank has made it clear that inflation is mainly “imported”, leaving room for future policy reinforcement.
harvest ultra short bond fund manager Li Jincan said that since the national standing committee meeting on Wednesday evening had “announced” the reduction of the reserve requirement in advance, the implementation of the central bank’s reduction of the reserve requirement on Friday was also within the market expectation. The 25bp decline shows the current attitude of the central bank to promote “stable growth” and cherish the normal space of monetary policy.
China Europe Fund believes that due to the resurgence of the epidemic and the adoption of sealing and control management in many places, China’s economy is greatly affected by the sealing and control management and logistics interruption, and the transmission channel of conventional reserve requirement and interest rate reduction may not be smooth. Under the background that individuals and enterprises are troubled by the epidemic, credit demand is expected to be relatively weak. Only increasing loanable funds may not effectively boost final demand, and the impact of this RRR reduction may be limited.
South Fund said that the combination of comprehensive RRR reduction and targeted RRR reduction was more restrained compared with the previous single comprehensive RRR reduction of 50bp. Combined with the targeted RRR reduction, it should reflect the rescue characteristics. In the short term, the rescue effect on entities is greater than expanding domestic demand, but it is verified that China’s monetary policy is still in a moderately loose cycle. In addition, the RRR reduction reduces the capital cost of financial institutions by about 6.5 billion yuan per year, which can promote the reduction of social comprehensive financing cost through the transmission of financial institutions.
Dacheng Fund believes that the 25bp reduction is lower than the 50bp previously expected by the market. There are three main reasons: first, the current inter-bank liquidity is relatively stable, the overnight interest rate at the beginning of the month is about 2%, and there is no large liquidity gap; Second, the global economy has stepped into the process of raising interest rates, and the differentiation of monetary policies between China and the United States has an increased impact on foreign exchange, which restricts the process of substantial easing by the central bank; Third, after continuous RRR reduction in recent years, the current weighted average deposit reserve ratio of financial institutions is 8.1%, which is at a low level, and the central bank has limited room for RRR reduction.
China Merchants Fund research department chief economist Li Zhan said that the April 13 national Standing Committee and the April 14 first quarter financial statistics press conference of the central bank pointed out that “the RRR and other monetary policy tools should be used in a timely manner to further strengthen financial support to the real economy”. There is a conflict between Russia and Ukraine, and there is an epidemic and real estate demand drag. This RRR reduction is in line with market expectations. From the perspective of policy guidance and real demand, there are the following reasons for the RRR reduction at this time: first, the recent meeting held by the State Council and the central bank released the general tone of monetary policy stability and relaxation. Second, steady growth, stable bank liabilities and coordinated bond issuance need the strength of monetary policy.
Huatai Bairui Fund said that from the perspective of policy purpose and implementation effect, the RRR reduction still focuses on enterprise rescue rather than the sign of “flood”. Under the background of the gradual expansion of structural monetary policy tools, the RRR reduction is more inclined to liquidity tools rather than obvious monetary policy signal tools. From the perspective of financial data structure in the first quarter, the current combination is that the government increases leverage, enterprises stabilize leverage and residents de leverage. The significance of RRR reduction is to alleviate the impact of the epidemic on the cash flow of small, medium-sized and micro enterprises and service industry, and further promote the landing of financial service entities.
Pengyang Fund said that in the evening of the 15th, the central bank announced the RRR reduction plan, which has been basically digested by the market. In terms of the way of reducing the reserve requirement ratio, the deposit requirement ratio generally decreased by 0.25 percentage points, which is less than that in the past. However, for urban commercial banks that do not operate across provinces and agricultural commercial banks with a deposit reserve ratio higher than 5%, an additional 0.25 percentage point will be reduced, showing directional support for the real economy. Yesterday, the central bank said at a news conference that in terms of price, we should give full play to the efficiency of quotation interest rate reform in the loan market. In today’s open market operation, the reverse repo and MLF interest rates are the same as before and have not been reduced. According to the central bank, since March, banks in more than 100 cities have independently lowered mortgage interest rates due to weakening market demand. This is supported by the weak growth of medium and long-term loans to households in the first quarter, which shows that the main contradiction restricting the recovery of real estate is on the demand side. Steady growth in the future is still the main line of the market, and the introduction and implementation of credit expansion policies in the second quarter are more worthy of expectation.
ABC Huili Fund believes that the purpose of this RRR reduction is to optimize the capital structure of financial institutions, increase the long-term stable capital sources of financial institutions, enhance the capital allocation capacity of financial institutions and increase support for the real economy. The second is to guide financial institutions to actively use the RRR reduction funds to support industries and small, medium and micro enterprises seriously affected by the epidemic. Third, the RRR reduction reduces the capital cost of financial institutions by about 6.5 billion yuan per year, which can promote the reduction of social comprehensive financing cost through the transmission of financial institutions.
Yu Kun, Macro Analyst of million funds believes that the RRR reduction promotes the derivation of bank credit, supports the real economy and hedges the impact of the epidemic. The release of 530 billion long-term funds from the RRR reduction is conducive to promoting banks to increase their support for entities, as well as supporting industries and small, medium and micro enterprises seriously affected by the epidemic. In addition, the RRR reduction can reduce the capital cost of financial institutions by 6.5 billion a year, thus promoting the decline of comprehensive financing costs.
Western profit Fund said that the landing time basically met the market expectations. However, the reduction range of 25bp is relatively restrained. Historically, the adjustment range of reserve ratio is generally 50-100bp each time, and the reduction range is slightly lower than expected. On the one hand, since 2019, China has established a reserve framework of “three grades and two excellence”. The reserve ratio of small and medium-sized banks was only 8.5% before the reduction, which was only 350bp higher than that of county rural commercial banks, rural credit cooperatives and rural banks with a reserve ratio of 5%, so there is relatively limited room for further reduction. On the other hand, the central bank pointed out that “pay close attention to the changes in price trends” and “pay close attention to the monetary policy adjustment of major developed economies, taking into account internal and external balance”, which means that China’s monetary policy adjustment will refer to overseas inflation and interest rate hikes.
Wu Xian, manager of Guohai Franklin fund believes that the RRR reduction is conducive to promoting abundant market liquidity, reducing the cost of bank liabilities, increasing support for the real economy, and specifically increasing support for small, medium-sized and micro enterprises and “agriculture, rural areas and farmers”. As the market has been expected before, and the RRR reduction is small, it is estimated that the impact on the stock market and bond market is not obvious. However, the RRR reduction reflects the care of the policy and the expectation of wide credit, which is conducive to improving the market risk appetite.
Luo Shuixing, chief Macro Analyst of ChuangJin Hexin Fund said that the time and direction of the RRR reduction were in line with market expectations and previous predictions. On the one hand, after the executive meeting of the State Council is expected to guide the monetary policy, the implementation of the policy can usually be seen within a week or two. On the other hand, from the perspective of policy choice, we previously predicted that the overall liquidity between the current money market and financial institutions is relatively abundant, mainly due to the sluggish demand side. Monetary policy needs to cooperate with fiscal and industrial policies to reach the entity more accurately, and the effect of RRR reduction, structural and direct monetary policy tools is better.
deppon Fund said that the RRR reduction was after the speech at the national Standing Committee on April 13, and the time point basically met market expectations, but the RRR reduction was slightly less than expected. We believe that the central bank chose to reduce the reserve requirement at this time, mainly to deal with the disturbance of the sudden epidemic to the economy and provide sufficient liquidity for institutions. However, the strength is only 0.25 percentage points, which is due to the current inflation level in China and the upside down interest rate difference between China and the United States, so the strength of policy easing is restricted to a certain extent.
Ruida Fund said that the RRR reduction was in line with the law of announcing the landing after the RRR reduction mentioned in previous national standing conferences, and the market had also expected the RRR reduction before. At present, the macro-economy is still in the process of reaching the bottom. Superimposed on the impact of the recent epidemic, the current economic pressure is large, and the reduction of reserve requirement is in line with the expectation of steady growth. Policy oriented monetary easing, guiding the orderly flow of money from the banking system to the real economy, reducing the cost of real enterprises, especially supporting industries and small, medium and micro enterprises damaged by the epidemic.
interest rate may also be reduced after RRR reduction
it is expected that monetary policy will remain loose
For the future policy space, a number of fund companies said that interest rates may also be cut after the RRR reduction, and the easing policy will still be strengthened. We need to pay close attention to the statement made at the Politburo meeting in April. The credit easing expectation exists, and the steady growth effect will gradually appear.
Wells Fargo Fund said that although the RRR reduction is small, the 500 billion liquidity is effective in reducing the financing cost of the real economy. The core focus in the future is whether the credit demand of credit subjects can recover after the epidemic is controlled, which is reflected in the recovery of the growth rate of social finance and medium and long-term loans, and confirm the arrival of “wide credit”. In addition, we are concerned about the LPR quotation on April 20. Considering that the CBRC requires commercial banks to reduce provisions to make more profits, the deposit interest rate of entities and some small and medium-sized commercial banks has moved down recently, there is still room for the LPR interest rate to move down.
China Southern Fund said that the RRR reduction once again verified the tone of the steady growth policy, and the monetary policy was still “dominated by me”. The recent rapid rise in US bond interest rates has led to the upside down of the interest rate spread of China US ten-year Treasury bonds. Affected by this, the space for the central bank to cut interest rates may be limited, which is a concern of the market and leads to the weak performance of equity assets. Therefore, regulators began to use more yuan tools to regulate the money supply. Various policies are aimed at avoiding the “credit collapse” and stabilizing economic growth and market confidence. The central bank also said today that it would “maintain reasonable and sufficient liquidity, promote the reduction of comprehensive financing costs and stabilize the macro-economic market”. The focus of China’s monetary policy may still be stable growth while taking into account internal and external balance for some time in the future.
China Europe Fund believes that after the implementation of the new round of RRR reduction, the scale of bank loanable funds is expected to increase by about 600 billion yuan. After several rounds of RRR reduction, the weighted average deposit reserve ratio of financial institutions has dropped to around 8%, while the deposit reserve ratio of many small banks has reached the lowest level required by prudential supervision. It is expected that the central bank will not start cutting interest rates and comprehensively reducing reserve requirements during the year, but may implement targeted measures to reduce reserve requirements.
Li Jincan, manager of harvest ultra short debt fund, said that we need to see that this round of epidemic has had a certain impact on China’s economy and affected market confidence. Therefore, we objectively need policy force to stabilize the market. But at the same time, the external environment is also more severe. The rise of bulk prices has exacerbated global inflation expectations. Under this background, the interest rate hike cycle of the Federal Reserve has begun, the interest rate spread between China and the United States is upside down, and China’s monetary policy will inevitably face certain constraints. Therefore, the force of the policy is more “restrained” and takes into account long-term problems. Whether the follow-up policies will further reduce the reserve requirement or interest rate may depend more on the situation of epidemic prevention and control and the performance of subsequent economic data.
Dacheng Fund said that the central bank’s current round of RRR reduction is mainly to alleviate the impact of the recent epidemic on the economy. With reference to the RRR reduction in April 2020, but the range is cautious. Considering that the MLF continues in the same amount on that day and does not cut interest rates, it is expected that there is little possibility of subsequent LPR changes.
Li Zhan, chief economist of the research department of China Merchants Fund, said that in the past, the raising and lowering of the reserve requirement at the national standing committee meeting would be implemented in most cases, ranging from 1-2 weeks slow to 2-3 days fast. Considering the recent monetary policy briefings by the policy level for many times, the lowering of the reserve requirement at the expiration of the MLF on April 15 is more appropriate and in line with expectations. After the RRR reduction, the interest rate may also be reduced. For example, the one-year LPR interest rate may be reduced on April 20; If the epidemic continues to impact the economy, the MLF interest rate may also be reduced in the second quarter.
Penghua Fund Fixed Income Research Department said whether it is still possible to cut interest rates after the RRR reduction in the second quarter. Unless the epidemic exceeds expectations, it is unlikely. Reason 1) considering that may and June are the time period when the Federal Reserve continues to raise interest rates, the market generally believes that it is not suitable as a window for interest rate reduction, which is reasonable. 2) The logic between economic weakness and interest rate reduction is not necessarily true. The high-level is intended to promote credit easing. After monetary easing, we need to observe the effect, cut interest rates or be a last resort. However, if the epidemic situation repeats or the “sequelae” exceeds expectations, it is not impossible to reduce interest rates by “focusing on me”.
Cathay Pacific Fund said that the implementation of the RRR reduction shows that the monetary policy is increasing its support for the real economy, and the “steady growth” policy is constantly advancing.
At present, the fierce competition for deposits has affected the further reduction of loan interest rate. The reduction of reserve requirement can effectively alleviate this problem. The overall purpose of the central bank is to expand credit by reducing loan interest rate. In addition, there is another positive signal from this RRR reduction, which indicates that the monetary policy of China and the United States can be deviated at this stage. China’s monetary policy still depends on the policy will, and the tightening of US monetary policy is not a constraint. This RRR reduction dispels the market’s concern about the limited room for China’s monetary policy easing in the Fed’s interest rate hike cycle, so as to support the improvement of market expectations.
Morgan Fund said that in the short term, the central bank’s guidance of “wide credit” is prior to “wide currency”, and the reduction of policy interest rate needs to wait for the opportunity. Recently, in anticipation of the accelerated pace of interest rate hike by the Federal Reserve, the US bond yield has risen rapidly to about 2.8%, and the interest rate spread between China and the United States on 10-year Treasury bonds has continued to narrow to near zero. The MLF operating interest rate did not decrease in April, and the marginal rise of external constraints faced by the current monetary policy may be one of the reasons. However, the goal of “reducing the financing cost of real enterprises” remains. If the subsequent US inflation fall and interest rate increase are fully expected, the space for the central bank to operate monetary policy will also be opened.
Yu Kun, a Macro Analyst of Wanjia fund, said that on the whole, the central bank has maintained relative restraint in the total easing, which may be due to the following reasons: 1) the current liquidity environment is generally loose; 2) Overseas central banks are still in the stage of rapid tightening, and the general tone of “internal focus” of the central bank remains unchanged, but we also need to take into account the internal and external balance to prevent the expectation of increasing capital outflow. In the future, China’s economy is still the dominant variable in the direction of monetary policy, and the monetary policy will remain loose, while credit should be the focus of the policy, supplemented by money.
Western profit Fund said that the RRR reduction will strengthen the strength of financial support entities to deal with economic pressure. At the beginning of the year, the economy has shown signs of marginal improvement under the forward force of various “steady growth” policies. However, since March, the epidemic in China has affected a wide range and lasted for a long time. The pressure of steady growth has increased significantly, and the necessity of reducing standards has increased. The RRR reduction will release about 530 billion yuan of long-term funds and reduce the capital cost of financial institutions by about 6.5 billion yuan per year. The transmission through financial institutions can promote the reduction of social comprehensive financing costs.
Luo Shuixing, chief Macro Analyst of ChuangJin Hexin fund, said that the RRR reduction was mainly due to the increasing complexity and uncertainty of China’s external environment, the recent frequent outbreaks in China, the obvious increase in difficulties of market players, the further increase of new downward pressure, and more measures to stabilize employment and players. At present, the overall liquidity continues to remain abundant, and stabilizing credit is the focus. At present, there has been a signal of improvement in the level of total credit. Through policy efforts, we will improve enterprise cash flow and boost residents’ credit demand, and the level of subsequent credit structure will also be gradually improved.
Shen Chao, a macro strategy analyst at HSBC Jinxin, said that the RRR reduction is the central bank’s response to the call of the executive meeting of the State Council to provide long-term funds for banks to help stabilize growth. At the same time, the RRR reduction can reduce the cost of bank liabilities, so as to reduce the loan cost for real enterprises. At the same time, the targeted RRR reduction of urban commercial banks and rural commercial banks that do not operate across provinces is intended to guide local banks to increase support for small and medium-sized enterprises with high operating pressure. Under the influence of the epidemic, the current economic pressure is great, and the monetary policy is expected to remain loose.
Wu Qiran, a macro strategy researcher of xingyin fund, said that recently, the self-discipline mechanism of market interest rate pricing held a meeting to encourage the floating upper limit of deposit interest rate of small and medium-sized banks to be reduced by about 10 basis points (BP). Although it is not mandatory and not strong, it is equivalent to directional interest rate reduction, which can alleviate the pressure on bank net interest margin to a certain extent. It is a measure of wider credit and is more conducive to achieving the goal of stabilizing the economy than RRR reduction. We observed that the MLF interest rate did not decrease in April, but since April, dr007 has been lower than the 7-day reverse repo interest rate for 10 consecutive trading days, and the interest rate reduction of LPR on the 20th can still be expected.
RRR reduction is good for the stock market in the short term. Pay attention to the relevant sectors of “steady growth”
has limited or positive effect on the bond market
What is the impact of RRR reduction on interest rates? How will the current stock market and bond market interpret after the RRR reduction? Which sectors or relative benefits? A number of fund companies believe that, on the whole, the RRR reduction is aimed at alleviating the adverse impact of the epidemic on China’s economy and boosting the growth of the real economy. The RRR reduction is good for the stock market in the short term. “Stable growth” is still the main investment line, and the degree of good for the bond market may be limited.
Boshi Fund said that the RRR reduction is in line with expectations, and the subsequent RRR reduction depends on the subsequent performance of the economy, which is good for the property market and stock market. However, the market is more concerned about the follow-up performance of the economy. Recently, it is more about the control of epidemic outbreaks in various places. The significance and logic of this RRR reduction is to guide the decline of financing costs to help stabilize the economy. It is good for the stock market, but more importantly, the follow-up performance of the economy. RRR reduction is good for the overall economy. Interest rate sensitive sectors, such as real estate and finance, will benefit more directly. RRR reduction is only one of the factors affecting the market. The differentiation of market structure is the result of the joint action of many factors.
Zou Deli, general manager of the fixed income investment department of Great Wall Fund, said that under the current scenario of relatively sufficient expectation of monetary easing, the impact of the RRR reduction on the bond market is relatively limited. The national Standing Committee mentioned that after the RRR reduction, the ten-year Treasury bond will only decline by about 2bp, and the key lies in whether the policy interest rate will be reduced. If the MLF interest rate is lowered, the bond market will usher in significant benefits, and the bond interest rate will further decline. On the whole, the bond market is bullish in the first half of this year due to the pressure of economic growth caused by the spread of the epidemic, and may be bearish in the second half of this year due to stimulating economic recovery. In terms of the equity market, after the overall rise in the previous two years, it may be necessary to reduce the expectation of the annual return on investment, but it should be at the bottom of the policy and the market, and there may be a structural rebound in the future.
Li Zhan, chief economist of China Merchants Fund Research Department, said that the implementation of the RRR reduction will help enterprises to rescue during the epidemic, boost the real economy and stabilize stocks and bonds. For the capital market, after the previous RRR reduction, the short-term winning rate of Shanghai Composite Index and Shanghai Shenzhen 300 is high, while the medium and long-term winning rate decreases, but the increase increases expand; The bond market can better reflect the expectation of RRR reduction in advance. After the RRR reduction is implemented, interest rates rise and fall differently. Therefore, given that the market expectation of the RRR reduction has been relatively sufficient, it is expected that the RRR reduction will be good for the stock market in the short term and limited for the bond market.
Penghua Fund Fixed Income Research Department said that looking forward to the future, the interpretation of the epidemic is still the main line. The negative impact of this epidemic on the economy may last until at least May. However, for the bond market, the potential negative impact caused by the epidemic has been reflected in interest rates. Therefore, the follow-up mainly depends on whether the epidemic itself exceeds expectations. In terms of benchmark, the inflection point of the epidemic this week may appear. The Political Bureau meeting next week will probably continue to strengthen the consensus on stable growth. The policies in the second quarter should pay close attention to the window period, and the strength of stable growth needs to be increased. Therefore, the medium-term logic is still based on wide credit.
Huatai Bairui Fund said that for the A-share market, since December 2021, the monetary policy has successively reduced the reserve requirement and interest rate, and the policy direction of broad monetary policy is more obvious. In the short term, A-shares are weak due to the comprehensive disturbance of the geographical conflict between Russia and Ukraine, the recurrence of covid-19 epidemic and the tightening of monetary policy of the Federal Reserve. The reduction of reserve requirement will help to alleviate the negative impact of the epidemic, but the actual effect still needs to be confirmed by credit supply and social financial growth. If the wide credit is actually implemented, It helps to improve the profit expectation and risk appetite of the A-share market.
JPMorgan Fund believes that the general market’s concerns about the downward trend of the economy are increasing recently, and the policies supporting credit relief such as RRR reduction and refinancing will help stabilize the real economy and boost the confidence of the financial market. For China’s rights and interests, under the background of warmer macro policies and rising attractiveness of valuation, it is a better time to gradually increase the allocation of long-term funds.
ABC Huili Fund believes that for the equity market, the RRR reduction can directly increase bank liquidity, the real estate market is expected to pick up in the future, and the stable growth cycle assets have investment opportunities. Under the background of steady growth and continuous promotion, the high boom growth track will remain an important configuration direction in the medium term, including high-end manufacturing represented by new energy, photovoltaic and military industry. For the bond market, the RRR reduction provides long-term and stable financial support for financial institutions, which is conducive to further easing of credit in the next stage and increasing support for the real economy.
Xie Yi, fund manager of Nord fund, believes that the RRR reduction is conducive to guiding financial institutions to use the new liquidity to support small and medium-sized enterprises hit by the epidemic, and is expected to have a significant effect on the economy to quickly get out of the bottom of the epidemic. More importantly, this reflects the positive support attitude of monetary policy to the economy. It can be said that from the targeted reduction of reserve requirements and interest rates in the early stage to the current comprehensive reduction of reserve requirements, the marginal monetary policy has turned to positive. As long as the epidemic policy can be alleviated, it is expected that the economic fundamentals will stabilize in the near future, the recovery will start, and the equity assets will rise simultaneously. Therefore, we remain optimistic about the future market. On the sector, we believe that the assets and industries will be benefited earlier in the early period, such as infrastructure, real estate, building materials, household appliances, etc., while other alternative consumption such as Baijiu, tax-free, and so on, will be relatively profitable as the epidemic gradually alleviates.
Cathay Pacific Fund said that in terms of investment, reducing the reserve requirement to release liquidity can stabilize the real economy and boost market sentiment, which has an “inclusive” effect on the equity and bond markets. In addition to monetary policy, fiscal policy and industrial policy may continue to play a role in stabilizing growth, and the equity market is expected to stabilize gradually. Now is a good time for long-term layout.
Wu Qiran, a macro strategy researcher at xingyin fund, said that from the resumption of several rounds of RRR reduction in the past, the RRR reduction is not necessarily related to the later performance of the A-share market. RRR reduction is a monetary tool in the period of economic downturn, and the stock market is the expectation of the economy. So whether the stock market will eventually improve depends on the expectation of the market. We believe that the crux of the current economy is that the transmission from broad currency to broad credit is not smooth. Real estate and epidemic are two key points restricting economic recovery, which still need to be further observed. At this time, the industry suggests paying attention to the two main lines of stable growth chain represented by big finance and building materials and overseas inflation chain represented by coal, chemical industry and agriculture.
Deppon Fund said that although the RRR reduction is not large, it is still good for the boost of market sentiment. The expectation of market improvement within one week after the implementation of previous RRR reductions will be relatively high. In the sector, the RRR reduction is good for capital sensitive, bulk commodities and sectors with strong financing demand, such as banks, real estate, securities companies, upstream nonferrous metals, mining and other industries. It is recommended to continue to pay attention.
Ruida Fund said that the current market is at the bottom of the region, which has basically become the market consensus, but the upward momentum of the short-term market is still insufficient, and the internal and external uncertainty has not yet landed. It is expected that the short-term market will still show a volatile trend. But as these uncertainties are gradually lifted, the market regains confidence and will usher in a rebound. The RRR reduction still benefits sectors related to steady growth, such as real estate, infrastructure and banking, as well as green energy, high technology and specialized new areas that benefit from the preference of credit policies.
