The Press Office of the State Council of China held a press conference to brief the People's Bank of China, the General Administration of Financial Supervision and the China Securities Regulatory Commission on the financial support of high-quality development. At the same time, a series of important policies were launched to enhance the intensity of monetary policy control and further promote stable economic growth.
President of the People's Bank of China Mr. Gongsheng said the central bank's base rate and the seven-day reverse repo rate would be cut by 0.2 %, to 1.5 % from the current 1.7 %. At the same time, the lending market quotation rate and deposit rate will fall to keep the net interest margin of commercial banks stable.
As regards housing loans, interest rates on existing housing loans will be reduced and the minimum down payment ratio for housing loans will be harmonised.
The People's Bank of China will create new monetary policy tools in the near future to support the stable development of the stock market. It will establish mutual facilitation for securities, funds and insurance companies and encourage qualified securities, funds and insurance companies to obtain liquidity from the central bank through pledging assets. It will significantly improve the ability to raise funds and increase shareholding. It will create special refinancing for share buybacks and increase shareholding, encourage banks to provide loans to listed enterprises and major shareholders, and promote share buybacks and increase shareholding.
CMG/ gnews-RoZ_07
PHOTO - pbc.gov.cn
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