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].

Core Viewpoint - The Chinese government is implementing a comprehensive financial policy package aimed at stabilizing the market and boosting expectations, with a focus on the real estate and capital markets, as well as supporting small and micro enterprises and foreign trade development [1]. Group 1: Real Estate Market Support - The National Financial Regulatory Administration is enhancing the city real estate financing coordination mechanism, with bank-approved "white list" loans increasing to 6.7 trillion yuan, supporting over 16 million housing units [2]. - In Q1, the real estate loan balance increased by over 750 billion yuan, with new personal housing loans reaching the largest quarterly increase since 2022, and housing rental loans growing by 28% year-on-year [2]. - Future plans include improving financing systems to match new real estate development models and ensuring stable financing for high-quality housing [2]. Group 2: Capital Market Stability - The National Financial Regulatory Administration is leveraging insurance funds as long-term capital to stabilize the stock market, with recent reforms allowing for increased investment from insurance funds [3]. - Specific measures to support the capital market include expanding long-term investment trials for insurance funds, increasing the investment limit by 60 billion yuan, and adjusting risk factors for stock investments [3]. - The administration aims to promote a long-term investment approach by enhancing performance evaluation mechanisms for institutions [3]. Group 3: Support for Small and Micro Enterprises - A comprehensive policy package will be introduced to support financing for small and micro enterprises, focusing on increasing supply, reducing costs, improving efficiency, and creating a favorable environment [4]. - Efforts will include deepening financing coordination, increasing the availability of loans, and simplifying internal processes to expedite loan approvals [4]. - The administration will also enhance collaboration among monetary, fiscal, industrial, and regulatory policies to create a more conducive development environment [4]. Group 4: Foreign Trade Development Support - The National Financial Regulatory Administration plans to implement policies to support foreign trade development, focusing on financial assistance amid increasing external pressures [5]. - Measures include expanding financing coordination to all foreign trade enterprises and providing tailored services for businesses facing challenges due to tariffs [6]. - The administration will optimize export credit insurance policies and support the transition of foreign trade enterprises to domestic sales, thereby enhancing consumption and expanding domestic demand [6].