The market welcomes the latest adjustment of the central bank’s monetary policy, RMB exchange rate, real estate financial policy, etc.

On May 9, the People’s Bank of China released the “China Monetary Policy Implementation Report for the First Quarter of 2022”. Formally expounds the next step of the supervision of financial holding companies, the operation of the market-oriented adjustment mechanism of deposit interest rates, etc.

Insist on not engaging in “flooding”

When looking at China’s economy, the central bank bluntly stated in the “Report” that recently, the new crown pneumonia epidemic and the The Ukraine crisis has led to increased risks and challenges, and the complexity, severity and uncertainty of my country’s economic development environment have increased.

When expounding the closely watched next stage of monetary policy thinking, the central bank continued the statement of the previous first quarter regular meeting of the Monetary Policy Committee in the “Report”, saying that the stable Monetary policy will increase support for the real economy, take the lead in maintaining stability, take the initiative to respond, boost confidence, do a good job in inter-cycle adjustment, insist not to engage in “flooding”, and give full play to the dual functions of monetary policy tools in terms of total volume and structure.

At the same time, in the face of the impact of the epidemic, the central bank stated in the “Report” that it is necessary to implement various financial policy measures to stabilize enterprises and ensure employment, and focus on supporting small and micro enterprises and those affected by Difficult industries and vulnerable groups affected by the epidemic.

The previous Politburo meeting of the CPC Central Committee emphasized “making good use of various monetary policy tools” when referring to monetary policy, which also appeared in the latest report. At the same time, the central bank reiterated that it will maintain reasonably sufficient liquidity, enhance the stability of the growth of total credit, keep the growth rate of money supply and social financing scale basically in line with the nominal economic growth rate, and keep the macro leverage ratio basically stable.

Pay close attention to the adjustment of monetary policy in major developed economies

In the context of the sharp decline in the exchange rate of the RMB against the US dollar since late April, the central bank in the latest When expounding the thinking of monetary policy in the next stage, the report stated that it will adhere to a managed floating exchange rate system based on market supply and demand, adjusted with reference to a basket of currencies, strengthen macro-prudential management of cross-border capital flows, strengthen expectation management, and guide market entities to establish a ” “Risk neutrality” concept, maintain the normal operation of the foreign exchange market, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.

It is worth mentioning that, compared with the fourth quarter of last year, the central bank made it clear in the “Report” that it will pay close attention to major developed economies under the background that the Fed will raise interest rates and shrink its balance sheet at the same time. Monetary policy adjustment, with me as the main focus, taking into account internal and external balance.

Support all localities to improve real estate policies based on local realities

The central bank also appeared when the central bank looked forward to the next stage of real estate credit policies in the latest monetary policy implementation report. new changes.

is reiterating “firmly adhere to the positioning that houses are for living in, not for speculation, insist not to use real estate as a short-term means of stimulating the economy, and insist on stabilizing land prices, While stabilizing housing prices and expectations”, “protecting the legitimate rights and interests of housing consumers, and promoting the healthy development and virtuous circle of the real estate market”, the central bank’s expression of “implementing the prudential management system for real estate finance” has been adjusted to “prudently implement the prudent management of real estate finance.” system”.

In addition, the central bank also emphasized in its latest report that it supports local governments to improve real estate policies and support rigid and improved housing needs.

Previously, Zou Lan, director of the Financial Market Department of the Central Bank, said at the central bank’s press conference that since March, due to weakening market demand, there have been more than 100 cities across the country. According to market changes and their own business conditions, banks have voluntarily lowered mortgage interest rates, with an average rate ranging from 20 to 60 basis points. In addition, some provincial-level market interest rate pricing self-discipline mechanisms also cooperate with the regulatory requirements of local governments. According to the actual situation of the city and within the scope of national policies, the lower limit of the city’s down payment ratio and the lower limit of the interest rate have been lowered. The differentiation and market-oriented adjustments made by its own business strategy have adapted to the characteristics of regional differences in the real estate market.

The market-based adjustment mechanism for deposit interest rates was established in April

In the “Report”, the central bank made it clear that the self-regulatory mechanism for guiding interest rates was established in April In the interest rate market-oriented adjustment mechanism, the member banks of the self-discipline mechanism refer to the bond market interest rate represented by the 10-year treasury bond yield and the loan market interest rate represented by the 1-year LPR to reasonably adjust the deposit interest rate level.

“Due to the fierce competition in the deposit market, in actual implementation, many banks’ time deposits and largeThe interest rate on certificates of deposit is close to the self-discipline ceiling. This hinders the effective transmission of market interest rates to a certain extent, and it is difficult for deposit interest rates to follow changes in market interest rates. The central bank said that the establishment of this mechanism can promote banks to track changes in market interest rates, improve the market-based pricing capabilities of deposit interest rates, and maintain a healthy competition order in the deposit market.

The column stated that after the establishment of the new mechanism, the bank’s deposit interest rate will be more market-oriented, and in the context of the current overall decline in market interest rates, it will help banks stabilize debt costs and promote further declines in actual loan interest rates. , State-owned banks such as the Postal Savings of Workers and Peasants, and most joint-stock banks have lowered their interest rates on time deposits with a maturity of more than one year and large-denomination certificates of deposit in late April, and some local corporate institutions have also lowered their interest rates accordingly. According to the latest survey data, In the last week of April (April 25-May 1), the weighted average interest rate of new deposits in financial institutions nationwide was 2.37%, down 10 basis points from the previous week.

In the next stage, the central bank will continue to deepen the market-oriented reform of interest rates, improve the formation and transmission mechanism of market-oriented interest rates, optimize the central bank’s policy interest rate system, strengthen the supervision of deposit interest rates, focus on stabilizing the cost of bank liabilities, give full play to the efficiency of LPR reform, and promote the reduction of comprehensive financing for enterprises. cost.

The central bank also stated that the establishment of a market-oriented adjustment mechanism for deposit interest rates focuses on promoting the further marketization of deposit interest rates, and the guidance to banks is flexible. Banks can adjust according to their own conditions. , refer to changes in market interest rates, and independently determine the actual adjustment range of their deposit interest rates. For financial institutions that adjust deposit interest rates in a timely and efficient manner, the central bank will give appropriate incentives.

Promote companies with established conditions to apply for financial holding companies in a stable and orderly manner

In March, the central bank approved China CITIC Financial Holdings Co., Ltd. (in preparation) And Beijing Financial Holding Group Co., Ltd.’s financial holding company establishment license, in the “Report”, the central bank explained in detail the next step in the financial holding company in the form of a column.

The central bank said that it will continue to adhere to the principles of marketization and the rule of law, adhere to the “two unswerving”, speed up the improvement of the supporting rules for the supervision of financial holding companies, and promote it in a stable and orderly manner. Enterprises with established conditions apply for the establishment of financial holding companies, carry out administrative examination and approval in accordance with laws and regulations, and implement continuous supervision over financial holding companies established upon approval, strengthen regulatory cooperation and information sharing with relevant departments, and promote the stable operation of financial holding groups. Serve the high-quality development of the real economy and help the economy runrationale interval.

The central bank said that there are many companies that are ready to establish a financial holding company as an opportunity to find out their family background, promote the separation of finance and industry, and ensure that the proposed establishment The qualifications of shareholders of financial holding companies are compliant to ensure that the organizational structure and relevant systems meet the conditions for establishment.