Core Viewpoint - The Chinese government is implementing a comprehensive financial policy package to stabilize the market and manage expectations, which includes monetary policy adjustments and regulatory measures aimed at supporting economic growth and market stability [5][6][7]. Monetary Policy Measures - The People's Bank of China (PBOC) will reduce the reserve requirement ratio for financial institutions by 0.5 percentage points, which is expected to provide approximately 1 trillion yuan in long-term liquidity to the market, lowering the average reserve requirement ratio from 6.6% to 6.2% [5]. - The monetary policy aims for adequate liquidity, low financing costs, and a supportive overall monetary environment, with a focus on dynamic adjustments based on economic conditions [6]. Regulatory Policies - The National Financial Regulatory Administration will introduce eight incremental policies, including: 1. Accelerating the development of financing systems compatible with new real estate models. 2. Expanding the pilot scope for long-term investments by insurance funds. 3. Optimizing regulatory rules. 4. Implementing a comprehensive policy to support financing for small and private enterprises. 5. Developing policies to support the banking and insurance sectors in facilitating foreign trade. 6. Revising management measures for merger loans. 7. Expanding the establishment of financial asset investment companies to qualified national commercial banks. 8. Formulating opinions on the high-quality development of technology insurance [6]. Market Stability Efforts - The China Securities Regulatory Commission is committed to consolidating the market's recovery momentum by enhancing market monitoring and risk assessment, and supporting the Central Huijin Investment Company in stabilizing the market [6][7]. - A significant portion of A-share listed companies derive nearly 90% of their revenue from domestic markets, indicating strong resilience and adaptability amid economic fluctuations [7].