Chinese policies

This week, the global focus is on the Chinese and Hong Kong stock markets.
With the direct order from the Chairman Xi Jinping of the Chinese Communist Party Political Bureau...
The active effect of the Chinese government's market rescue efforts is
The Hong Kong stock market, the China stock market surged.
ETFs based in China and Hong Kong have also soared for a few days.

Understanding macro policies can help us quickly grasp market trends and entry opportunities.

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On September 24, the Governor of the People's Bank of China, Pan Gongsheng, the Director of the China Banking and Insurance Regulatory Commission Li Yunze, and the Chairman of the China Securities Regulatory Commission Wu Qing,
introduced various policy measures to support high-quality economic development.

Overall, the policy measures are very strong, almost epic.

Isn't the market short of money?

Give as much as needed, will also reduce the reserve requirement, and issue long-term government bonds!

The People's Bank of China provides full funds for interbank swaps to various brokerages, funds, and insurance companies, estimating a total of 1.5 trillion yuan in three phases, which must all be invested in the stock market. This new regulation is significant and thought-provoking.

The central bank, through loan methods, effectively injects original funds into various public fund companies. Fund companies become the largest shareholders of fund products, thereby laying the foundation for long-term funds for the stock market. In addition, the central bank has established a funding target for stock buybacks to support listed company stock prices, with an initial fund of 300 billion yuan.

The three monetary easing policies mentioned above have provided approximately 0.08 trillion in liquidity for the stock market (clearly stated as 1.8 trillion yuan).

The special loan funds for housing provident fund collection are 100% funded by the central bank, providing full support.

In the past, local special bonds were strictly not allowed to flow into the real estate and land markets. Now, the tone has changed—

Allowing some local special bonds to be used for land acquisition; guiding policy banks and commercial banks to provide loans to support enterprises under certain conditions in acquiring and activating land.

By collecting surplus housing inventory to stabilize supply and demand, and by acquiring land to stabilize land prices, the central bank has indeed spared no effort.

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