National Standing Committee made two mentions of targeted RRR cuts during the month and issued more than one trillion red envelopes to support small, medium and micro

National Standing Committee made two mentions of targeted RRR cuts during the month and issued more than one trillion “red envelopes” to support small, medium and micro
The National Council of the People’s Republic of China moved out of the targeted RRR cut for the second time this month.According to CCTV reports, Premier Li Keqiang presided over an executive meeting of the State Council on March 31, in order to strengthen financial support for small and medium-sized enterprises, and determined to further implement targeted reductions to small and medium-sized banks, and then released more than one trillion “red packets” to support small and medium-sized microenterprise.The “red envelope” includes relatively new alternatives: guiding the net financing of corporate credit bonds by 1 trillion yuan more than the previous year, and promoting small and medium-sized enterprises to gradually raise 800 billion yuan in accounts receivable.Wen Bin, chief analyst of China Minsheng Bank, analyzed that credit bond financing can increase direct financing channels for enterprises. At present, market interest rates are gradually declining, and credit debt issuance interest rates will also be declining, thereby increasing the scale of direct financing of enterprises and reducing financing costs.”Account receivable financing refers to the use of account receivables for pledge financing without secured collateral. In this way, it can strengthen the credit support for small and medium-sized enterprises. It is a new structured financing.arrangement.”Financing of accounts receivable under the supply chain system can also strengthen support for upstream, downstream, small, medium and micro enterprises.”Wen Bin said.Supporting small, medium and micro enterprises, there is also a reduction in the standard of combination.”Further implement a targeted reduction of the standards for small and medium-sized banks, and guide small and medium-sized banks to obtain all funds to lend to small and medium-sized enterprises at a preferential interest rate.”The National Convention on March 31 said.Officials, the National Council of the People’s Republic of China proposed on March 11 to “emphasize the introduction of targeted reduction measures for inclusive financial services and increase the reduction of shareholding banks.”Five days later, Pratt & Whitney Financial made a targeted reduction to the floor, releasing a total of 550 billion yuan in long-term funds.In the short term, two directional RRR cuts did not exceed market expectations.After the downgrade in mid-March, many others believed that under the global interest rate cuts, the gradual follow-up of monetary policy space, coupled with the need to further reduce the financing cost of the real economy, downgrade is one of the policies that can be adopted.In addition, last week the Politburo meeting expanded the fiscal deficit ratio and issued special government bonds and other policy packages. The Guoxin macro team said that based on historical experience, the issuance of large amounts of local debt and special government bonds requires a loose liquidity environment, and the RRR cut is still expected.It was originally expected that April would be a window period for a new round of RRR cuts.In order to “loan small and medium-sized enterprises with preferential interest rates”, interest rate cuts will be accompanied by interest rate cuts.The Air Force restarted the reverse repurchase after 29 trading days in a day of combat, netted 50 billion yuan, and rarely cut interest rates by 20 basis points at a time.Analysts at CITIC Securities clearly believe that the downward pressure on the economy in the first quarter of the country has led to the gradual strengthening of policy coordination at the G20 meeting. It is expected that the interest rate for MLF (medium-term lending facility) operation and LPR (quote rate for loan market) will be synchronized in 4 monthsDowngrade.The National Convention on March 31 also proposed to increase the re-discount limit of small and medium-sized banks by 1 trillion, and expand the credit coverage of agriculture-related, foreign trade, and industries heavily affected by the epidemic.In late February, the Air Force has set up a 500 billion refinancing and re-discounting quota. At that time, the deputy governor Liu Guoqiang said, “If not enough, consider increasing the quota.”He also stated that the interest rate for small and medium-sized banks to obtain re-loans from the transition is 2.5%, let small and medium banks add 50 basis points according to LPR, which is 4.Small and medium-sized banks should be motivated to lend to enterprises with a loan rate of 55%.The National Council ‘s proposal to “support financial institutions to issue US $ 300 billion in small and micro financial bonds for the issuance of small and micro loans” also has a foreshadowing. Last year, lawmakers proposed to support financial institutions to issue small and micro enterprise financial bonds and raise the funds raised.All used for financing small and micro enterprises.Sauna, Ye Wang Cheng Weimiao Editor Zhao Ze proofreading Zhang Yanjun