Understanding the Market | Hongye Futures surged over 50% during trading as the central bank announced a reserve requirement ratio cut and interest rate reduction, with the company's first-quarter revenue increasing by more than 2.5 times year-on-year

Zhitong
2025.05.07 02:24
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Hongye Futures rose over 50% during trading, and as of the time of publication, it was up 41.25%, priced at HKD 3.63, with a transaction volume of HKD 615 million. In terms of news, Pan Gongsheng, the Governor of the People's Bank of China, stated today at a press conference held by the State Council Information Office that the reserve requirement ratio will be lowered by 0.5 percentage points, which is expected to provide approximately CNY 1 trillion in long-term liquidity to the market. The policy interest rate will be reduced by 0.1 percentage points, from the current 1.5% to 1.4%, which is expected to drive the LPR down by about 0.1 percentage points. The interest rate for personal housing provident fund loans will be lowered by 0.25 percentage points, with the interest rate for the first home loan for a term of five years or more reduced from 2.85% to 2.6%, and the rates for other terms adjusted accordingly. It is reported that Hongye Futures previously released its first-quarter report for 2025, showing total operating revenue of CNY 643 million, a year-on-year increase of 259.09%; net profit attributable to the parent company was CNY 1.2032 million, turning from a loss to a profit year-on-year. According to data from the China Futures Association, the entire industry of futures companies achieved a total net profit of CNY 2.479 billion in the first quarter, a year-on-year increase of over 60%

According to the Zhitong Finance APP, Hongye Futures (03678) rose over 50% during the trading session, and as of the time of publication, it was up 41.25%, priced at HKD 3.63, with a transaction volume of HKD 615 million.

In terms of news, Pan Gongsheng, the Governor of the People's Bank of China, stated today at a press conference held by the State Council Information Office that the reserve requirement ratio will be lowered by 0.5 percentage points, which is expected to provide approximately CNY 1 trillion in long-term liquidity to the market. The policy interest rate will be reduced by 0.1 percentage points, from the current 1.5% to 1.4%, which is expected to drive the LPR down by about 0.1 percentage points. The personal housing provident fund loan interest rate will be lowered by 0.25 percentage points, with the interest rate for the first home loan over five years dropping from 2.85% to 2.6%, and the rates for other terms will be adjusted accordingly.

It is reported that Hongye Futures previously released its first-quarter report for 2025, showing total operating revenue of CNY 643 million, a year-on-year increase of 259.09%; net profit attributable to the parent company was CNY 1.2032 million, turning from a loss to a profit. Data from the China Futures Association indicates that the entire industry of futures companies achieved a net profit of CNY 2.479 billion in the first quarter, a year-on-year increase of over 60%

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