at the beginning of the new year, the policy package for stabilizing the economy was rolled out one after another. on january 6, the reserve requirement ratio for financial institutions was lowered by 0.5 percentage points, and more than 800 billion yuan of liquidity was released. at the first executive meeting of the state council of the new year held on january 3, the first topic was to identify measures to promote steady growth of manufacturing industry and stabilize the basic disk of economic development. on january 2, with the issuance of local bonds by sichuan and henan provinces, the issuance of local bonds for the whole year was launched, and the progress was further advanced than that of the previous year. since january 1, new policies have been adopted to reduce import tariffs on more than 850 commodities and cut some administrative fees.
industry experts point out that, in accordance with the deployment of the central economic work conference, 2020, our country economy "stability", whether in open has "stable economy" policy, or a recent intensive department annual work meeting, release the "hold" a strong signal of, more measures and to ensure that our country economy opening "stability".
the people's bank of china (pboc) has issued its first "gift package" for the start of the year: today's rrr cut will be implemented as scheduled. this cut will release over 800 billion yuan of long-term funds, effectively increase the stable source of funds for financial institutions to support the real economy, reduce the cost of funds for financial institutions to support the real economy, and directly support the real economy.
li yiju, a researcher at the bank of china research institute, said the rrr cut is conducive to steady economic growth. at present, stable growth has become the focus of economic work. this rrr cut reflects the strengthening of counter-cyclical adjustment of monetary policy, which is conducive to boosting aggregate demand.
in charge of the people's bank of china said that, in the full down must only business of city commercial banks in provincial administrative area, service county rural commercial banks, rural cooperative banks, rural credit cooperatives and rural banks and small and medium-sized banks so as to obtain long-term funds more than 1200 one hundred million yuan, is advantageous to the enhancement based on local, return to the origin of micro, small and medium-sized banking services to small private enterprise financial strength. at the same time, the rrc cut will reduce banks' capital cost by about 15 billion yuan per year. through bank transmission, the real cost of social financing will be reduced, especially for small and private enterprises.
on the one hand, the financial sector has increased its support for the real economy.
the executive meeting of the state council, which was held on january 3, made it clear that, in keeping with the spirit of the central economic work conference, the economy should operate within a reasonable range, and the manufacturing sector should play a fundamental supporting role. we need to use reform and market-based measures to fully stimulate the vitality of market players, increase growth drivers, and promote steady growth in the manufacturing sector.
"manufacturing is the leading sector of china's economic growth. at present, the added value of manufacturing accounts for nearly 30% of gdp. lin zhiyuan, deputy director of the center for macroeconomic research at xiamen university, told the economic information daily that stabilizing the growth of manufacturing is also a basic way to achieve the goal of stabilizing employment. at the same time, manufacturing industry is the carrier of knowledge economy, the development of high-tech industry and manufacturing industry are inseparable, promoting the development of manufacturing industry is the only way to achieve high-quality development. therefore, it is of great significance for china's economy to promote steady growth of manufacturing industry.
he said the realization of the goal of "six stability" in 2020 would not be possible without timely counter-cyclical adjustment of macroeconomic policies. due to open in include mlf (medium term lending facilities) in the first quarter, taxes, such as local government debt issued in advance due more money collecting, coupled with the spring festival new year's money demand, must release the long-term funds about the drop more than 8000 one hundred million yuan, and open in money collecting form hedge, helps to maintain the basic stability of the amount of liquidity in the banking system, not change the basic orientation of the steady monetary policy. the accelerated issuance of local government bonds is aimed at stabilizing the growth of infrastructure investment and providing important support for steady investment and growth.
in the opinion of zhang jun, chief economist of morgan stanley china xin securities, the emphasis of the national people's congress on the stable growth of manufacturing industry reflects the emphasis of the policy level on counter-cyclical adjustment and stable growth. stable investment, as the core part of the "six stability", is an important means to achieve stable economic growth. in particular, investment in high-tech manufacturing and services has grown rapidly in recent years, and the increased contribution of new industries to economic development will further boost steady growth.
he told the economic information daily that the comprehensive rrr cut and the accelerated issuance of local government bonds are the result of the policy of "loosening monetary policy, tightening credit and loosening fiscal policy", and also highlight the main goal of the current policy, namely, to countercyclical adjustment and steady growth with china as the main target.
first of all, in line with the implementation of the proactive fiscal policy, the people's bank of china started the year with a comprehensive rrr cut, further reducing the cost of bank funds, releasing more cheap medium - and long-term funds to enhance the willingness of banks to lend and the financing capacity of manufacturing enterprises. by improving the enterprise environment, we will consolidate the long-term working mechanism of "willing, daring and willing to lend" in the manufacturing industry, and enhance the driving force of enterprise production expansion from the inside.
secondly, the accelerated issuance of special bonds also reflects the policy orientation of maintaining stable growth under the foundation of infrastructure construction, and provides a better interest rate environment for the issuance of special bonds by lowering interest rates and the required reserve ratio at an appropriate time. by boosting the internal growth drivers of production and investment in the whole society, the pressure of economic downturn can be alleviated while external uncertainties remain.
at present, the macro - control toolbox of counter-cyclical adjustment has been opened. it is worth noting that in addition to the policies that have already been implemented, the annual work meetings held by various departments have also sent a clear policy signal that more policies and measures will be prepared for the six stability goals and the three major challenges.
for example, the national conference on development and reform made it clear that we will vigorously promote the formation of a strong domestic market, reserve and implement major projects, strive to expand effective investment, and actively foster and expand new growth areas in consumption. the national conference on fiscal work pointed out that we will consolidate and expand the effects of tax cuts and fee reductions. the national conference on industry and information technology pointed out that the "six stability" plan should be implemented to ensure that the industrial economy operates within a reasonable range. we will work to stabilize investment in the manufacturing sector, channel funds into advanced manufacturing and infrastructure sectors that benefit both supply and demand and have a multiplier effect, and promote the upgrading of both industries and consumption.
more financial policies aimed at supporting entities will be implemented in the first quarter. from march 1, 2020, the interest rate of existing loans will be "changed to anchor", and the application of lpr in existing loans will be further expanded. the move will further promote interest rate liberalization, and with lpr playing a greater role in guiding loan interest rates downward, financing costs for the real economy are expected to continue to fall.
the solstice on january 2 3 of 2020 working meeting of the people's bank of china in 2020 also work conducted a comprehensive deployment, meeting requirements, the implementation of prudent monetary policy, resolutely fight against resolving major financial risk to be completed, deepen the financial reform and opening up, comprehensively to do a good job of "six stability", as a whole to promote steady growth, promoting the reform, restructuring, livelihood, prevent risks, maintaining stability, for the high quality and economic development to create a good monetary and financial environment.
source: china financial information net