CCTV News: At the press conference of the State Council Information Office on the morning of May 7, People's Bank of China Governor Pan Gongsheng said that the central bank will increase the intensity of macro-control and introduce a package of monetary policy measures.

Pan Gongsheng introduced that the first category is quantitative policies, which can increase medium- and long-term liquidity supply through measures such as lowering the reserve requirement ratio and maintain abundant market liquidity. The second type is price-based policies, which lowers the policy interest rate. The third category is structural monetary policy, which improves existing structural monetary policy tools and innovates policy tools to support scientific and technological innovation, expand consumption, inclusive finance and other fields.

Pan Gongsheng also emphasized that Huijin Company is an important strategic force in maintaining the stability of the capital market. Firmly support Huijin Company to implement increased holdings of stock market index funds when necessary and provide them with sufficient re-lending support.

At the same time, Pan Gongsheng announced that it would also lower the interest rate of personal housing provident fund loans by 0.25 percentage points. The reporter learned that the scope of the adjustment of the housing provident fund loan interest rate this time includes both newly issued housing provident fund loans and existing housing provident fund loans. After the interest rate is lowered, the newly issued housing provident fund loans will implement a new interest rate. The interest rate of the previously issued housing provident fund loans will be lowered from January 1, 2026. Taking a first personal housing provident fund loan with an amount of 1 million yuan, a term of 30 years, and equal principal and interest repayment as an example, the monthly payment will be reduced from 4,136 yuan to 4,003 yuan, a decrease of about 133 yuan, and the total interest expenditure will be reduced by about 47,600 yuan.

In terms of studying the launch of the bond market "Technology Board", Pan Gongsheng said that he supports three types of market entities such as financial institutions, technology-based enterprises, and equity investment institutions to issue technology innovation bonds. At present, relevant policies and preparations are basically ready.

Experts: Cutting the reserve requirement ratio and interest rate will effectively reduce corporate financing costs

What impact will these policies have on investment and financing?

Experts said that the central bank has introduced three major categories of ten major measures, and the interest rate cuts are implemented as scheduled. The increase in structural monetary policy reflects the forward-looking and targeted nature of countercyclical adjustments of macro policies.

Zhang Jun, chief economist of China Galaxy Securities: The central bank's 50 basis points cut in the reserve requirement ratio will provide the market with a long-term liquidity of more than 1 trillion yuan, which can effectively cooperate with the fiscal system to continue to make efforts in the second quarter to form physical investment as soon as possible. At the same time, a 10 basis points reduction in interest rates can effectively reduce corporate financing costs.

Experts said that this "package of policies" has focused on the structure of new quality productivity, including increasing capital investment in the fields of scientific and technological innovation and technological transformation.

This press conference clearly mentioned greater efforts to "induce long money" and coordinate with all parties to continue to increase the scale and proportion of various medium- and long-term funds entering the market. Experts said that this is of positive significance for maintaining the current capital market and boosting investor confidence.

Chief Domestic Strategy Analyst of the Research Department of CICC Li Qiusuo: Medium- and long-term funds generally have high investment management capabilities and professional level, and their investment behavior also pays more attention to the business quality of the enterprise, medium- and long-term development space and intrinsic value, and can play the role of value discovery and value guidance in the capital market, and promote a more rational and mature market ecology.