One central bank, two regulatory bureaus and one association! China's assets rise in response?

October 18, 2024, Financial Street Forum annual meeting opened today, the theme is “trust and confidence - discuss financial openness and cooperation to share economic stability and development”. Central Bank Governor Pan Gongsheng, State Administration of Financial Supervision and Administration Director Li Yunze, Securities and Futures Commission Chairman Wu Qing, and foreign exchange bureau chief Zhu Hesin attended the opening ceremony and delivered a speech.

Below are the main points:

Central Bank Governor Pan Gongsheng:

1. further cut the reserve requirement ratio (RRR) by 0.25-0.5 percentage points on an opportunistic basis, and the LPR announced on the 21st is also expected to be cut by 0.2-0.25 percentage points.

2. the central bank to provide stock repurchase, and holdings refinancing has a specific point of view, credit funds can not enter the stock market in violation of the bottom line.

3. The policy document on special refinancing for stock buybacks and holdings was released and implemented today.

4. The two tools to help the stable development of the capital market are based entirely on market-oriented principles, and the swap facility is not direct financial support from the central bank.

5. The promotion of a reasonable recovery in prices will be taken as an important consideration, and more attention will be paid to the role of interest rates and other price-based regulatory tools.

Li Yunze, Director General of the General Administration of Financial Supervision:

1. support eligible insurance institutions to set up new securities investment funds, and currently a number of insurance companies have submitted relevant applications.

2. at present, the newly signed intention fund of financial asset investment companies has exceeded 250 billion yuan.

3. support large banks to accelerate the replenishment of core tier 1 capital and expand the space for credit growth.

Wu Qing, Chairman of the Securities and Futures Commission (SFC):

1. further deepen capital market reform and study and formulate a program to deepen capital market reform.

2. resolutely crack down on irregularities and detours in reducing holdings.

3. from the recent transaction data, there is no bunching, or irregularities in reducing holdings.

4. approved and agreed to 20 securities companies and fund companies applying for central bank swap facilities.

Mr. Zhu Hesin, Director General of the Foreign Exchange Administration:

1. implement the requirements of “long teeth and barbed wire” and “sharp edges” of supervision, and crack down on all kinds of foreign exchange illegal and irregular activities.

2. a comprehensive assessment of the implementation of important foreign exchange policies in key areas such as the North, Shanghai, and Guangzhou, and the Pilot Free Trade Zones for early and pilot implementation. 3.

3. Currently, foreign direct investment has improved, and foreign capital allocation of RMB assets has been elevated.

At the same time:

Hong Kong stocks exploded today, with the Hang Seng Index $Hang Seng Index (800000.HK)$and the State-owned Enterprise Index $Hang Seng China Enterprises Index (800100.HK)$ increasing by 3%, and the Hang Seng Technology Index $Hang Seng TECH Index (800700.HK)$ increasing by more than 5%. Semiconductor, technology stocks, brokerage stocks, and bank stocks led the gains.