HTSC(SH:601688) HTSC·2025-06-19 09:39Monetary Policy Insights - The People's Bank of China (PBOC) announced a focus on structural monetary policy, with limited room for further rate cuts, expecting a slight reduction of 50 basis points in reserve requirement ratios and 10 basis points in interest rates in the second half of 2025[2] - Emphasis on structural policy tools to support monetary expansion and boost the growth of broad money supply and social financing[2] - Initiatives include expanding structural policy tools and piloting innovative monetary policy tools in Shanghai, such as blockchain credit refinancing and cross-border trade refinancing[2] Financial Market Development - The PBOC's measures aim to invigorate the domestic financial market and promote innovation, including offshore trade finance reforms and the development of offshore bonds[4] - The establishment of financial infrastructure like interbank market transaction reporting and personal credit institutions is expected to enhance transparency and risk monitoring[4] - The financial regulatory authority plans to increase support for consumption and key strategic areas, while further deepening reforms in the Sci-Tech Innovation Board[4] Internationalization and Global Strategy - The PBOC's initiatives to support enterprises going global and enhance the internationalization of the Renminbi (RMB) include developing offshore bonds and optimizing free trade account functions[5] - The establishment of a digital RMB international operation center is anticipated to facilitate cross-border trade and enhance the RMB's status in the global monetary system[5] - The PBOC is expected to promote the use of digital RMB in cross-border payments and settlements, aiding in RMB internationalization[5] Risk Considerations - Potential risks include slower-than-expected progress in domestic financial opening and unexpected volatility in global financial markets[6]