A package of financial policies has been released—here’s a quick overview of the key points!

Recently, the State Council Information Office held a press conference, at which officials from the People's Bank of China, the National Administration of Financial Regulation, and the China Securities Regulatory Commission provided information. “ A package of financial policies supports market stability and stabilizes expectations. ” Relevant information.

Central bank ——

Launch a package of monetary policy measures.

01

The People's Bank of China will intensify its macroeconomic regulation and introduce a package of monetary policy measures, comprising three major categories and a total of ten specific measures.
First, quantitative policies—through measures such as lowering the reserve requirement ratio—to increase medium- and long-term liquidity supply and maintain ample market liquidity. Second, price-based policies—by cutting policy interest rates and reducing the interest rates on structural monetary policy tools, namely the interest rates at which the central bank provides relending to commercial banks—and simultaneously lowering housing provident fund loan rates. Third, structural policies—by refining existing structural monetary policy tools and introducing new ones—to support areas such as technological innovation, expanding consumption, and inclusive finance.

These three categories of initiatives encompass a total of ten specific policies:

1 Lower the reserve requirement ratio. 0.5 percentage points, providing the market with long-term liquidity of approximately 1 Trillion yuan;
2 Improve the reserve requirement system by lowering the reserve requirement ratio for auto finance companies from... 5% Lowered to 0；
3 Lowering the policy interest rate 0.1 percentage point, 7 Tian Ni Reverse Repo 1.5% → 1.4% ；
4 , lower the rate LPR0.1PCT；
5 Lower the interest rate on structural instruments. 0.25PCT；
6 Lower the interest rate on personal housing provident fund loans. 0.25 percentage point;
7、 Establish 5000 100-Million-Yuan Service Consumption and Pension Refinancing Loans Increase support for low-cost funding in key consumption sectors;
8、 Add 3000 100-million-yuan re-loan for technological innovation and technical transformation ；
9 Optimize two monetary policy tools that support the capital market, and— 5000 Yuan-denominated securities, fund, and insurance company swap facilities and 3000 The credit limits for the two tools—equity increase and share repurchase, as well as refinancing—have been combined, bringing the total credit limit to: 8000 100 million yuan.

10、 Establish a risk-sharing instrument for science and technology innovation bonds. The central bank provides low-cost refinancing funds that can be used to purchase bonds issued by companies engaged in technological innovation. In collaboration with local governments and market-oriented credit enhancement institutions, the central bank will adopt diversified credit enhancement measures—including joint guarantees—to share part of the default risk associated with these bonds. This support will help technology innovation enterprises and equity investment institutions issue low-cost, long-term bonds for financing purposes.

General Administration of Financial Regulation ——

Will be launched soon. 8 Incremental policy items

02

Accelerate the introduction of a series of financing mechanisms that are aligned with the new model of real estate development.

Further expand the pilot scope of long-term investment by insurance funds to bring more incremental capital into the market.

Adjust and optimize regulatory rules, lower the risk factors for stock investments by insurance companies, and support the stabilization and revitalization of the capital market.

Quickly roll out a comprehensive package of policies to support financing for small and micro enterprises and private enterprises.

Formulate a series of policy measures to support the development of foreign trade in the banking and insurance sectors;

Provide targeted services to market entities that are significantly affected by tariffs.

Increase investment in science and technology innovation enterprises and formulate guidelines for the high-quality development of science and technology insurance.

Securities Regulatory Commission ——

Launch a package of measures to stabilize the market. “ Combination punch ”

03

1 We will make every effort to consolidate the momentum of market stabilization and improvement, dynamically refine our contingency plans for responding to various external risks and attacks, and fully support China Central Huijin Investment Co., Ltd. in playing its role as a quasi-stabilization fund.

2 Recently, policies and measures have been introduced to further deepen the reforms of the STAR Market and the ChiNext Board, enhancing the inclusiveness and adaptability of the systems in areas such as market review and investor protection.

3 Speed up the issuance of the Administrative Measures for Major Asset Restructuring of Listed Companies and related regulatory guidelines, so as to better leverage the capital market’s role as the primary channel for mergers and acquisitions.

4 For listed companies that are significantly affected by tariff policies, we will further enhance regulatory flexibility in areas such as equity pledges, refinancing, and the use of raised funds, thereby helping them alleviate their difficulties. We will also continue to refine the rules for information disclosure exemptions and guide listed companies to engage in effective communication with investors.

5 — Release an action plan to promote the high-quality development of public mutual funds.

6 Strengthen multi-tiered capital market products and services, encourage eligible domestic enterprises to list overseas in accordance with laws and regulations, and enhance their ability to expand into global markets.