Group 1 - The People's Bank of China (PBOC) announced a 5% reduction in the reserve requirement ratio for auto finance companies and financial leasing companies, effective May 15, 2025, to implement a moderately loose monetary policy and enhance macroeconomic regulation [1][6]. - This adjustment is seen as a signal of support from the government for the automotive industry, automotive circulation industry, and automotive finance industry, particularly during a phase of increased domestic demand in the automotive consumption market [6][7]. - The reduction in the reserve requirement means that these financial institutions will no longer need to set aside a portion of their funds, allowing them to use the released capital for more flexible loans and investments, thereby increasing market liquidity [6]. Group 2 - PBOC Governor Pan Gongsheng indicated that this "reduction in reserve requirement" is a temporary measure, reflecting the significant role financial institutions play in promoting automotive sales and consumption [6]. - The removal of the reserve requirement may lead financial institutions to rely more on their liquidity management capabilities, which could pose risks if market demand for funds surges or if economic volatility increases [6].

马来西亚央行：存款准备金率下调将释放约190亿林吉特的流动性。 ...

Group 1: Hot News - The People's Bank of China announced on May 7th to cut the deposit - reserve ratio by 0.5 percentage points, providing about 1 trillion yuan of long - term liquidity to the market, and lower the deposit - reserve ratio of auto finance companies and financial leasing companies from 5% to 0% [2] - The PBOC decided to cut the personal housing provident fund loan interest rate by 0.25 percentage points starting from May 8th, 2025 [2] - The PBOC decided to cut the re - loan interest rate by 0.25 percentage points starting from May 7th, 2025 [2] - Vice - Premier He Lifeng will visit Switzerland from May 9th - 12th and hold talks with the US side. The talks are held at the US request, and China's stance against US tariff abuse remains unchanged [3] - The Fed kept the benchmark interest rate unchanged at 4.25% - 4.50%, in line with market expectations. Traders still expect three rate cuts this year [3] Group 2: Sector Performance - Key sectors to focus on: glass, soda ash, asphalt, coking coal, urea [4] - Night - session performance: non - metallic building materials rose 2.58%, precious metals rose 31.40%, oilseeds and oils rose 11.78%, soft commodities rose 2.71%, non - ferrous metals rose 19.66%, coal - coking - steel - minerals rose 12.63%, energy rose 2.51%, chemicals rose 12.07%, grains rose 1.85%, and agricultural and sideline products rose 2.81% [4] Group 3: Asset Performance - Equity: Shanghai Composite Index rose 0.80% daily, 1.94% monthly, and - 0.27% year - to - date; S&P 500 rose 0.43% daily, 1.12% monthly, and - 4.26% year - to - date; Hang Seng Index rose 0.13% daily, 2.59% monthly, and 13.12% year - to - date [7] - Fixed - income: 10 - year Treasury bond futures fell 0.19% daily, - 0.14% monthly, and - 0.07% year - to - date; 5 - year Treasury bond futures fell 0.08% daily, - 0.10% monthly, and - 0.51% year - to - date [7] - Commodities: CRB commodity index fell 0.85% daily, 0.34% monthly, and - 2.35% year - to - date; WTI crude oil fell 1.84% daily, - 0.33% monthly, and - 19.35% year - to - date; London spot gold fell 1.95% daily, 2.31% monthly, and 28.20% year - to - date [7] - Others: US dollar index was flat daily, - 0.38% monthly, and - 8.50% year - to - date; CBOE volatility was flat daily, 0.24% monthly, and 42.71% year - to - date [7]

Group 1: Monetary Policy Adjustments - The People's Bank of China (PBOC) will lower the reserve requirement ratio for financial institutions by 0.5 percentage points starting May 15, 2025, and by 5 percentage points for auto finance and leasing companies [1] - The PBOC has also reduced the re-lending rates by 0.25 percentage points, with new rates set at 1.2%, 1.4%, and 1.5% for 3-month, 6-month, and 1-year agricultural and small business re-lending respectively [1] - The PBOC has increased the re-lending quota for technological innovation and technical transformation by 300 billion yuan, bringing the total to 800 billion yuan [3] Group 2: Support for Capital Markets - The PBOC has merged the total quota of two monetary policy tools aimed at supporting capital markets, allowing for a combined usage of 800 billion yuan [2] - Nearly 500 market institutions plan to issue over 300 billion yuan in technology innovation bonds, indicating strong market response to the new "technology board" initiative [8] Group 3: Development of Technology Innovation Bonds - The PBOC and the China Securities Regulatory Commission (CSRC) have announced the issuance of technology innovation bonds by financial institutions and technology enterprises to support investment in the technology sector [4] - The new bond issuance framework aims to enhance the financing capabilities of technology firms and promote innovation [4] Group 4: Fund Management Fee Structure - The CSRC has introduced a floating management fee structure linked to fund performance for newly established actively managed equity funds, encouraging better performance alignment with investor interests [6]

Core Viewpoint - The People's Bank of China has temporarily reduced the reserve requirement ratio for auto finance companies and financial leasing companies from 5% to 0%, aiming to enhance liquidity and support economic growth [1][2]. Group 1: Policy Impact - The reduction in reserve requirement means that these financial institutions no longer need to set aside funds, allowing them to use the released capital for more flexible loans and investments [1]. - This adjustment is expected to provide higher liquidity in the market, alleviating pressures from slowing economic growth and tightening financial markets [1]. Group 2: Business Models - Auto finance companies primarily offer car loans and financing leasing services, supporting consumers in the automotive sales market [1]. - Financial leasing companies focus on equipment financing leasing, providing funding support for businesses to acquire and lease necessary equipment, covering a broader range of sectors [1]. Group 3: Challenges and Risks - Both types of financial institutions face challenges in capital operations, particularly when liquidity is insufficient, which can limit their lending capabilities [2]. - The policy change allows auto finance companies to offer more consumer loans, potentially stimulating automotive consumption demand [2]. - However, the removal of the reserve requirement means that financial institutions will need to enhance their liquidity management capabilities to avoid short-term liquidity strains during market fluctuations [2].

央行行长潘功胜：降低存款准备金率0.5个百分点 预计向市场提供长期流动性约1万亿元 智通财经5月7日电，中国人民银行行长潘功胜5月7日在参加国新办新闻发布会时表示，降低存款准备金 率0.5个百分点，预计向市场提供长期流动性约1万亿元。下调政策利率0.1个百分点，即公开市场7天期 逆回购操作利率从目前的1.5%调降至1.4%，预计将带动贷款市场报价利率（LPR）同步下行约0.1个百 分点。 ...

潘功胜：降低存款准备金率0.5个百分点，预计向市场提供长期流动性约1万亿。下调政策利率0.1个百分 点，从目前的1.5%下调到1.4%。 ...

Core Viewpoint - Turkey has raised the reserve requirement ratio (RRR) for foreign currency deposits, indicating a strategic move to manage foreign exchange liquidity and stabilize the currency [1] Group 1: Economic Implications - The increase in RRR aims to reduce the amount of foreign currency available in the banking system, which could help strengthen the Turkish lira [1] - This policy change reflects the government's ongoing efforts to address economic challenges and control inflation [1] Group 2: Banking Sector Impact - Banks will need to adjust their liquidity management strategies in response to the higher reserve requirements, potentially affecting lending practices [1] - The adjustment in RRR may lead to a tighter credit environment, impacting businesses and consumers reliant on foreign currency loans [1]