On September 24, the three major A-share indexes collectively soared, among which the Shanghai Composite Index rose 4.15% to close at 2,863.13 points, the largest one-day increase since July 6, 2020. The Shenzhen Component Index rose 4.36% to close at 8,435.70 points, while the ChiNext Index rose 5.54% to close at 1,615.32 points.
Today, all industry sectors rose, with more than 5,100 stocks rising. From the perspective of turnover, the turnover of the Shanghai and Shenzhen markets was 971.3 billion yuan, an increase of 420.5 billion yuan from yesterday.
On the morning of September 24, the Information Office of the State Council held a press conference, at which Pan Gongsheng, Governor of the People's Bank of China, Li Yunze, Director of the State Administration of Financial Regulation, and Wu Qing, Chairman of the China Securities Regulatory Commission, introduced the relevant situation of financial support for high-quality economic development.
Central Bank: Create new tools to support the stable development of the stock market
At the press conference, Pan Gongsheng, governor of the central bank, announced three policies:
First, the reserve requirement ratio and policy interest rate will be lowered, and the market benchmark interest rate will be lowered. Second, reduce the interest rate on existing mortgages and unify the minimum down payment ratio for mortgages. Third, we need to create new monetary policy tools to support the stable development of the stock market.
With regard to the reduction of the reserve requirement ratio and policy interest rate, Pan Gongsheng said that the reserve requirement ratio will be lowered by 0.5 percentage points in the near future to provide long-term liquidity to the financial market by about 1 trillion yuan; in terms of the reserve requirement ratio, by the end of the year, depending on the situation, it is possible to further reduce the reserve requirement ratio by another 0.25-0.5 percentage points.
The central bank's policy rate will be lowered, and the seven-day reverse repo rate will be cut by 0.2 percentage points, from the current 1.7% to 1.5%.
Regarding the reduction of the interest rate of the existing housing loan and the minimum down payment ratio of the unified housing loan, Pan Gongsheng said that the average reduction of the interest rate of the existing housing loan is expected to be about 0.5 percentage points, and the minimum down payment ratio of the second home loan at the national level will be reduced from 25% to 15%.
The proportion of central bank funding support in the previously created 300 billion yuan affordable housing re-loan will be increased from 60% to 100%; Extend the term of the "16 Financial Measures" and the two phased policy documents on operating property loans to 2026.
Regarding the creation of new monetary policy tools to support the stable development of the stock market, Pan Gongsheng introduced two items:
The first is to create a swap facility for securities, funds and insurance companies, and support eligible securities, funds, and insurance companies to obtain liquidity from the central bank through asset pledges, which will greatly enhance the ability of institutions to obtain funds and increase their stock holdings, "The first phase of the planned swap facility will operate 500 billion yuan, and the scale can be expanded in the future as appropriate." ”
The second is to create a special re-loan for stock repurchase and increase holdings, and guide banks to provide loans to listed companies and major shareholders to support repurchase and increase their stock holdings, "the initial amount is 300 billion yuan, and if this tool is used well, it can come to another 300 billion yuan, and even a third 300 billion yuan." ”
China Securities Regulatory Commission: Promote medium and long-term funds to enter the market, highlighting the protection of the legitimate rights and interests of small and medium-sized investors
Wu Qing, chairman of the China Securities Regulatory Commission, focused on the "three highlights":
The first is to highlight the enhancement of the internal stability of the capital market. Guidance will be issued on promoting the entry of medium- and long-term funds into the market, including a series of arrangements to support the entry of medium- and long-term funds into the market.
Wu Qing mentioned that we will vigorously develop equity public funds, optimize the registration of equity fund products, vigorously promote the innovation of indexed products such as broad-based ETFs, and launch more small and medium-cap ETF fund products including ChiNext and Science and Technology Innovation Board in a timely manner. In addition, it will promote the mutual fund industry to steadily reduce the comprehensive rate.
Improve the institutional environment of "long-term money and long-term investment", focusing on improving the regulatory inclusiveness of medium- and long-term capital equity investment, and fully implement long-term assessment for more than three years. Break down the institutional barriers that affect the long-term investment of insurance funds, and promote insurance institutions to be firm value investors.
At the same time, guide the multi-level and multi-pillar old-age security system and the capital market to interact benignly, and improve the national social security fund, basic old-age insurance fund investment policy system.
The second is to highlight the recovery of the real economy and the high-quality development of the economy. The China Securities Regulatory Commission will issue six measures to promote mergers and acquisitions and restructuring, and actively support listed companies to carry out mergers and acquisitions around strategic emerging industries and future industries; Listed companies will be actively encouraged to strengthen industrial integration, and will be supported by greatly simplifying the review process.
The China Securities Regulatory Commission will also make great efforts to improve the efficiency of transactions in the restructuring market, and support listed companies to further improve the flexibility of transactions and the efficiency of capital use by means of payment instruments such as installment issuance of shares and convertible bonds, payment of transaction consideration in installments, and supporting financing in installments according to the specific needs of the transaction arrangement. At the same time, a simplified review procedure for restructuring has been established to improve the efficiency of restructuring.
The third is to highlight the protection of the legitimate rights and interests of small and medium-sized investors. Resolutely crack down on financial fraud, market manipulation and other violations of laws and regulations, and at the same time strive to implement more exemplary cases in representative litigation and advance compensation.
Wu Qing also said that the China Securities Regulatory Commission, in conjunction with relevant ministries and commissions, has studied and formulated guidelines for the management of the market value of listed companies, requiring listed companies to do a good job in market value management in accordance with the law.
For example, listed companies are required to actively use market value management tools such as mergers and acquisitions, equity incentives, and major shareholder increases to enhance investment value; Listed companies are required to establish a regular buyback mechanism arrangement; Require long-term broken companies to formulate value enhancement plans, etc.
In the near future, the China Securities Regulatory Commission (CSRC) will solicit public comments on market capitalization management guidelines.
State Administration of Financial Regulation: Support the sustained and steady development of the capital market
Regarding the measures taken to promote the sound operation of large banks, Li Yunze, director of the State Administration of Financial Regulation, introduced that it plans to increase the core Tier 1 capital of six large commercial banks, and continue to urge large commercial banks to improve the level of refined management.
It is planned to expand the scope of equity investment pilot projects of bank-based financial asset investment companies to 18 cities; Appropriately relax the restrictions on the amount and proportion of equity investment, increase the proportion of on-balance sheet investment from the original 4% to 10%, and increase the proportion of investment in a single private equity fund from the original 20% to 30%.
For the urban real estate financing coordination mechanism, Li Yunze introduced that up to now, commercial banks have approved more than 5,700 whitelist projects, with a financing amount of 1.43 trillion yuan, supporting the delivery of more than 400 housing units on schedule.
For the blocking points and stuck points in the financing of small and medium-sized enterprises, the State Administration of Financial Supervision will focus on taking measures from two aspects: First, it will work with the National Development and Reform Commission to establish a working mechanism to support the financing coordination of small and micro enterprises. The second is to optimize the policy of renewing loans without principal repayment.
Li Yunze also said that he will continue to support the sustained and steady development of the capital market.
The first is to expand the pilot reform of long-term investment of insurance funds, support other qualified insurance institutions to set up private securities investment funds, and further increase investment in the capital market.
The second is to supervise and guide insurance companies to optimize the assessment mechanism, and encourage and guide insurance funds to carry out long-term equity investment.
The third is to encourage wealth management companies and trust companies to strengthen their equity investment capabilities, issue more long-term equity products, actively participate in the capital market, and cultivate and expand patient capital through multiple channels.
Regarding a series of policies issued by the central bank, the China Securities Regulatory Commission and the State Administration of Financial Regulation, Wen Bin, chief economist of China Minsheng Bank, said that these measures will help boost market confidence, stabilize credit levels, and support the steady development of the real economy and capital market. The new tool will direct capital flows to the equity market, which is expected to boost investor confidence and promote a sustained economic recovery.
J.P. Morgan Asset Management believes that the A-share market, especially the strategic emerging industries that represent new quality productivity, is standing at a new starting point for growth, and with the stable development of the capital market and the gradual improvement of investor confidence, it is expected to become an important force to promote sustained economic growth.