Market Overview - The A-share market experienced a volatile adjustment, with major indices collectively declining, particularly the ChiNext index which fell over 2% [2][6] - The Shanghai Composite Index closed at 3954.79, down 0.81%, while the Shenzhen Component Index closed at 13378.21, down 1.14% [2] Sector Performance - The top-performing sectors included pharmaceuticals (up 2.42%), media (up 2.39%), and retail (up 2.08%) [3] - Conversely, the worst-performing sectors were telecommunications (down 4.07%), electronics (down 3.06%), and non-bank financials (down 1.31%) [3] Concept Index Performance - Notable concept indices included recombinant proteins (up 3.72%), cell immunotherapy (up 3.58%), and AI corpus (up 3.42%) [3] - Underperforming concept indices included cultivated diamonds (down 2.96%) and storage chips (down 2.02%) [3] Future Outlook - The report indicates that the market is expected to maintain an upward trend, supported by policies aimed at promoting high-quality development in the capital market during the "14th Five-Year Plan" period [6] - It is suggested to focus on sectors such as banking, oil and petrochemicals, transportation, non-bank financials, and coal for potential investment opportunities [6]

Group 1 - The People's Bank of China emphasizes the need for stable economic growth and reasonable price levels, maintaining policy continuity while enhancing flexibility and foresight [1] - The meeting highlights the weakening momentum of global economic growth and uncertainties in inflation trends and monetary policy adjustments, while acknowledging domestic challenges such as insufficient demand and low price levels [1] - The meeting calls for the implementation of a moderately loose monetary policy and strengthening of counter-cyclical adjustments, with a focus on the effectiveness of policy measures [1] Group 2 - The meeting encourages the use of securities, funds, and insurance company swap facilities, as well as stock repurchase and increased loans to maintain capital market stability [2] - There is a continued emphasis on stabilizing the real estate market and ensuring the effectiveness of previously introduced financial policies [2] - The meeting urges large banks to play a key role in serving the real economy while encouraging small and medium-sized banks to focus on their core responsibilities and enhance capital strength [2]

Core Viewpoint - The People's Bank of China emphasizes a prudent monetary policy that avoids excessive liquidity while maintaining overall price stability and supporting the real economy through targeted measures [1][2]. Group 1: Monetary Policy Implementation - The report highlights the importance of structural monetary policy tools to support key sectors and vulnerable groups, particularly small and micro enterprises affected by the pandemic [2]. - A significant increase in special re-lending quotas is proposed, including 200 billion yuan for technological innovation, 40 billion yuan for inclusive elderly care, and an additional 100 billion yuan for clean and efficient coal utilization [2]. - The central bank plans to introduce 100 billion yuan in re-lending to support logistics and warehousing enterprises [2]. Group 2: Interest Rate and Lending - The report indicates a downward trend in actual loan interest rates, with the average deposit rate falling to 2.37% in the last week of April, a decrease of 10 basis points from the previous week [5]. - The establishment of a market-oriented deposit rate adjustment mechanism is expected to further lower the Loan Prime Rate (LPR) in May [5]. - There is an expectation for commercial banks to reduce the LPR for loans with a term of five years or more, alleviating the cost pressure on homebuyers [6]. Group 3: Currency Stability - The report stresses the need to maintain the stability of the RMB exchange rate through a managed floating exchange rate system and macro-prudential management of cross-border capital flows [7]. - Recent measures include a reduction in the foreign exchange reserve requirement ratio by 1 percentage point, aimed at improving liquidity and stabilizing the RMB exchange rate [7]. - Analysts suggest that the pressure for rapid depreciation of the RMB has been alleviated, providing a foundation for maintaining stability in the future [8].