Two major events happened this morning. The central bank, the State Administration for Financial Regulation, and the China Securities Regulatory Commission gathered to introduce the relevant situation of "a package of financial policies to support stabilizing markets and stabilizing expectations"; the other is that China decided to agree to contact the US in a few days. Against this background, the market has mostly given "major" comments on the policies issued by the three major institutions. Understanding the "mainland" of these policies, Mr. Tan talks about some points.

Big Signal 1: Lowering the reserve requirement ratio and interest rate cuts are very timely

Market institutions analyze that at present, the impact of the tariff war may have an impact on exports in the second quarter, so the necessity and urgency of lowering the reserve requirement ratio and interest rate cuts have been further enhanced. At this time, the reserve requirement ratio and interest rate cuts are simultaneously reduced, which fully reflects the determination and strength to support the real economy.

Big Signal 2: Policy space is always sufficient

Our country has rich short-term monetary policy adjustment tools and more flexible operations. Judging from the monetary policy operations over the past 40 years, the central bank has also accumulated experience in flexibly adjusting the deposit reserve ratio. In the future, my country will have at least 2-2.5 percentage points of room for lowering the reserve requirement ratio.

Big Signal Three: The capital market obtains sufficient funds and ammunition

Comprehensive support for the Central Huijin Company to play a good role as a "standard fund", which means that we are currently in place in all aspects of the market stabilization mechanism, funds, and operations, and are becoming increasingly complete.

Big Signal Four: Policy efforts are more accurate

Overall, the financial policies introduced this time, in addition to releasing liquidity, also emphasize precise efforts, such as supporting key areas such as technology, consumption, pension, capital market, real estate, small and micro enterprises and the "three rural issues", with very clear policy orientation.