Core Viewpoint - The Chinese government is implementing a comprehensive financial policy package to stabilize the market and expectations, focusing on real estate financing, foreign trade financial support, and the establishment of Asset Investment Companies (AIC) by commercial banks [1][2]. Financial Stability - The overall financial operation is stable, with major regulatory indicators in a healthy range. The capital adequacy ratio of banks and insurance companies is improving, with a decrease in non-performing loan ratios by approximately 0.1 percentage points year-on-year and an increase in provision coverage ratios by about 10 percentage points [2][3]. - In the first quarter of 2024, the core Tier 1 capital adequacy ratios for major banks were as follows: China Construction Bank at 13.98%, Industrial and Commercial Bank of China at 13.89%, Bank of China at 11.82%, Agricultural Bank of China at 11.23%, Bank of Communications at 10.25%, and Postal Savings Bank of China at 9.21% [2][3]. Policy Measures - Eight new policies will be introduced to support financial stability: 1. Develop financing systems compatible with new real estate development models to stabilize the real estate market [4]. 2. Expand the pilot scope for long-term insurance fund investments to introduce more incremental funds [5]. 3. Optimize regulatory rules to lower investment risk factors for insurance companies, supporting capital market stability [6]. 4. Implement a comprehensive policy to support financing for small and private enterprises [6]. 5. Formulate policies to support foreign trade development, particularly for businesses affected by tariffs [6]. 6. Revise management measures for merger loans to promote industrial transformation [6]. 7. Expand the establishment of AICs to qualified national commercial banks to increase investment in technology enterprises [8]. 8. Develop high-quality development opinions for technology insurance to support innovation [8]. Real Estate Financing - The approved "white list" loans by commercial banks have increased to 6.7 trillion yuan, supporting the construction and delivery of over 16 million residential units. In the first quarter of this year, the real estate loan balance increased by over 750 billion yuan, with new personal housing loans showing the largest quarterly increase since 2022 [8][9]. Support for Foreign Trade - In the first four months, the banking and insurance sectors provided approximately 17 trillion yuan in new financing for the real economy. The no-repayment renewal loan policy has facilitated 4.4 trillion yuan in renewals for small and micro enterprises [10][11]. - A comprehensive policy package will be introduced to support small and private enterprises, focusing on increasing supply, reducing costs, improving efficiency, and enhancing the business environment [12]. AIC Establishment - The establishment of AICs is progressing, with signed intent amounts exceeding 380 billion yuan. The pilot program has expanded to 18 cities, with relaxed investment limits and optimized assessment mechanisms [13][14].