State Council Information Office holds a major press conference: Reserve requirement ratio cut and interest rate cut are coming!

At 9 a.m. today, the State Council Information Office will hold a press conference to introduce the "Package of Financial Policies to Support Market Stability and Expectations." Pan Gongsheng, Governor of the People's Bank of China, Li Yunzhe, Director of the National Financial Regulatory Administration, and Wu Qing, Chairman of the China Securities Regulatory Commission, will attend the conference.

Pan Gongsheng, Governor of the People's Bank of China, stated at the press conference that the reserve requirement ratio for financial institutions will be lowered by 0.5 percentage points, which is expected to provide approximately 1 trillion in long-term liquidity to the market; the announced rate for structural monetary policy will be reduced by 0.25 percentage points, and the policy interest rate will be lowered by 0.1 percentage points, from the current 1.5% to 1.4%; the personal housing provident fund interest rate will be reduced by 0.25 percentage points, with the interest rate for the first home over five years dropping from 2.85% to 2.6%, and the rates for other terms will be adjusted accordingly.

Pan Gongsheng also stated that a 500 billion yuan relending facility will be established to support consumption and elderly care, increasing low-cost funding support for key areas of consumption; an additional 300 billion yuan will be added to the relending quota for technological innovation and technological transformation; and the reserve requirement system will be improved, with the reserve requirement ratio for auto finance companies and financial leasing companies being temporarily lowered from the current 5% to 0%.

Li Yunzhe, Director of the National Financial Regulatory Administration, stated at the press conference that the overall financial operation is stable, with major regulatory indicators in a healthy range, the fundamentals of large financial institutions are solid, and the reform of small and medium-sized financial institutions has achieved phased results, with the industry's safety cushion continuously strengthening; a series of financing systems compatible with the new model of real estate development will be accelerated for introduction in the near future.

Wu Qing, Chairman of the China Securities Regulatory Commission, stated at the press conference that efforts will be made to consolidate the momentum of market stability and improvement, dynamically improve contingency plans to respond to various external risk attacks, and fully support the Central Huijin Investment Ltd. to play the role of a quasi-stabilization fund; the management measures for major asset restructuring of listed companies and related regulatory guidelines will be released promptly to better leverage the role of the capital market as the main channel for mergers and acquisitions.

Wu Qing emphasized that the most important characteristic of our capital market is "reliable," and there is confidence, conditions, and capability to achieve stable and healthy development of the Chinese stock market