On May 20, the central bank sent a "big gift package" to the market, announcing that the five-year LPR was reduced by 15 basis points to 4.45%. Affected by this, the three major A-share indexes were all red on Friday, with an increase of more than 1%.
For the recent measures of the central bank frequently announcing "interest rate cuts", 10 billion private equity capital said that this released a clearer signal of policy easing and could be more optimistic about future investment.
effectively promote steady growth
The recent epidemic has been repeated, and the economy continues to face pressure. The wide credit policy based on the goal of stable growth has become an important policy tool. As an interest rate adjustment tool, the interest rate cut is in line with market expectations. According to the capital analysis, the bank's loans are basically priced with reference to LPR. The decline of LPR is conducive to stimulate the credit demand of real enterprises, so as to guide the decline of real financing costs and enhance the effect of credit expansion. An important factor hindering the current credit expansion is the low willingness of residents to increase leverage. Adjusting the five-year LPR can be described as "applying the right medicine to the case". It plays an important role in promoting steady growth, stimulating consumption and increasing investment and financing of small and medium-sized enterprises.
Since the reform of LPR system in August 2019, the biggest price reduction of LPR has been adjusted to 10 BP in April 2020. This five-year LPR has been reduced by 15 basis points to 4.45%, which is higher than the previous range. Therefore, the A-share market took the lead in giving a response.
Since March, the epidemic has been repeated, and there have been rare rapid adjustments in the stock market. As the epidemic situation in Shanghai has been effectively controlled recently, and the corresponding steady growth policies have been released continuously, the macro-economy will continue to move in a good direction. Starting from the early stage, investors will gradually look for "high-quality chips" and build a high-quality market.
favorable growth stocks and capital sensitive industries
Recently, A-Shares have gradually stepped out of the "independent market", which is weakly affected by the sharp decline of US stocks. They have stepped out of the market rising against the trend, especially the successive "takeover" rise of growth stocks, indicating that the activity of funds and the risk appetite of the market are picking up.
Xiangju capital said that in the short term, the interest rate cut is good for the capital sensitive non banking, banking, infrastructure and real estate industries. It also helps the recovery of residents' willingness and ability to increase leverage and promote consumption. In the medium and long term, the reduction of five-year LPR is also helpful for the reduction of medium and long-term loan costs of enterprises. For growth stock investment, it is conducive to the production expansion of growth companies at a lower cost.
Previously, due to the lack of obvious stimulus measures in the market, Xiangju capital said it should maintain "cautious optimism". However, as the central bank's interest rate cut measures increased, the signal of policy easing became clearer. Xiangju capital believes that it can be more optimistic about the future market. However, in the future, to pursue higher returns, we still need to rely on accurate stock selection.
Xiangju capital said that in the future, it will continue to look for advantageous growth stocks with upward long-term development momentum, good stock price explosiveness and controllable withdrawal space. At the same time, it will pay more attention to the denominator and strive to measure the market water temperature in a timely and accurate manner. In addition, for consumption and medicine with relatively high economic relevance, we will refine and explore the components that affect the performance of the molecular end, closely follow the variables, and find the subdivided fields and companies with stronger internal growth.
