Just moments ago, a super blockbuster news was announced.

The central bank governor, Pan Gongsheng, at the press conference held by the State Council Information Office today (September 24, 2024) in the morning, announced several major favorable policies in one breath!

1.

The reserve requirement ratio will be reduced by 0.5 percentage points in the near term, providing about 1 trillion yuan in long-term liquidity to the financial market.

2.

The central bank's policy interest rate will be lowered, with the 7-day reverse repo operation interest rate cut by 0.2 percentage points, from the current 1.7% to 1.5%, guiding the loan market quotation rate and deposit interest rate to move downward in sync.

This means that next month's LPR will cut interest rates by 20 basis points, which is a significant move!

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3.

The existing mortgage loan interest rate will be reduced, with an estimated average decrease of about 0.5 percentage points.

Specifically: guiding commercial banks to reduce the existing mortgage loan interest rate to near the newly issued mortgage loan interest rate, with an estimated average decrease of about 0.5 percentage points.

The minimum down payment ratio for second-home mortgages at the national level will be reduced from 25% to 15%, unifying the minimum down payment ratio for first and second homes.

4.

The creation of swaps for securities, funds, and insurance companies will be facilitated, supporting qualified securities, funds, and insurance companies to obtain liquidity from the central bank through asset pledge, which will greatly enhance the ability to obtain funds and increase stock holdings.

Special re-lending will be created, guiding banks to provide loans to listed companies and major shareholders, supporting share buybacks and increases in stock holdings.

The management's efforts are very strong this time, and the above four major favorable policies have exceeded market expectations.

Although everyone predicted a reserve requirement ratio cut, the general expectation was 0.25 percentage points, but now it's double!

Previously, it was widely believed that there would be an interest rate cut in October, with a general expectation of a cut of 10 to 20 basis points, but now it's a full-scale cut.

Previously, people predicted that the existing mortgage loan interest rate would be reduced, but not only has it been reduced, but the down payment ratio for the second home has also been directly reduced to 15%, which is unprecedented in history.

As for the support for the stock market, it has also exceeded expectations, which is equivalent to directly printing money for the stock market!

This is a major favorable policy for the real estate market, the stock market, and the Chinese economy.

It is believed that today's stock market will see a carnival.

Why step on the gas at this time?

Because the economy is somewhat cool, and it is necessary to exert effort to boost the economy!

The financial data previously released by the central bank shows that although the year-on-year growth rate of M2 (which can be seen as the money printing speed) has bottomed out, it is still at the lowest level in more than two years.

As for the narrow money M1, which represents corporate investment confidence and is a leading indicator of the stock market, it continues to fall.

The investment, consumption, and real estate data published by the National Bureau of Statistics are also weak, with only exports doing well: Now, we have finally waited for a super big favorable policy.