Changjiang Securities(SZ:000783) Changjiang Securities·2025-05-07 11:13Policy Measures - On May 7, 2025, the central bank announced ten monetary policy measures to stabilize the market and expectations, including a 0.5% reduction in the reserve requirement ratio, expected to provide approximately 1 trillion yuan in long-term liquidity[2] - The LPR (Loan Prime Rate) was reduced by 10 basis points, while the interest rate for first-time homebuyers on five-year loans decreased from 2.85% to 2.6%[4] - A targeted reserve requirement ratio of 0% was introduced for auto finance and financial leasing companies, marking a historical first in China[6] Structural Tools - The central bank introduced structural monetary tools with a total of at least 1.1 trillion yuan in low-cost loans, targeting sectors such as technology innovation and small enterprises[7] - The interest rates for various structural monetary tools were lowered by 25 basis points, including the re-lending rate for agricultural support, which decreased from 1.75% to 1.5%[4] - An additional 3,000 billion yuan was allocated for technology innovation and technical transformation re-lending, increasing the total from 5,000 billion yuan to 8,000 billion yuan[5] Market Impact - The central bank's proactive measures are expected to cushion "Chinese assets" against external shocks and uncertainties, with a focus on maintaining economic stability amid international trade tensions[8] - The anticipated fiscal stimulus is expected to further support market stability and growth, with a coordinated approach to monetary and fiscal policies[9] - The report expresses optimism for both equity and bond markets, citing regulatory support for asset prices and market expectations[9]