{Economic Information Daily, 20th exclusive} The People's Bank of China (PBOC) announced yesterday several reform measures regarding its monetary policy framework, including studying the timing of shifting the primary policy interest rate to the overnight repo rate in open market operations, and switching the main maturity of open market operations from 7-day to overnight. This morning, the October Loan Prime Rate (LPR) was released, with the 1-year LPR remaining unchanged at 3.0%; the over 5-year LPR remains at 3.5%.
The three major stock indices in Shanghai and Shenzhen opened lower this morning. The SSE Composite Index opened down 0.33% at 3,718.44 points, the Shenzhen Component Index opened down 0.36%, and the ChiNext Index opened down 0.5%. Oil and agribusiness stocks rose against the trend, while defense and gold stocks declined.
Additionally, PBOC Governor Pan Gongsheng officially announced on Monday (19th) at the opening ceremony of the Financial Street Forum Annual Conference that he will jointly launch five major policy initiatives with several financial departments. First, a liquidity support facility will be established together with the National Financial Regulatory Administration and the China Securities Regulatory Commission (CSRC) to address large redemptions by non-bank financial institutions. Second, the scope of institutions eligible for the Standing Lending Facility (SLF) will be expanded. Third, efforts will be made to implement interconnectivity in the bond market. Fourth, pilot programs will further facilitate offshore financial institutions' conduct of RMB purchase and sale business in the domestic foreign exchange market. Fifth, guidance on financial support for building international science and technology innovation centers in Beijing (Jing-Jin-Ji), Shanghai (Yangtze River Delta), and the Guangdong-Hong Kong-Macao Greater Bay Area will be jointly issued with the Ministry of Science and Technology and others.
CSRC Chairman Wu Qing also stated at the Financial Street Forum that efforts will be made to consolidate and improve market-stabilizing mechanisms, remain highly vigilant against new risk points such as leveraged products linked to A-shares overseas, and approve the registration of the first batch of 18 active ETFs, among others. He also indicated that a series of measures, including the steady launch of the Beijing Stock Exchange 50 ETF and market capitalization-based subscription for new listings on the Beijing Exchange, will be rolled out. (ry)
The three major stock indices in Shanghai and Shenzhen opened lower this morning. The SSE Composite Index opened down 0.33% at 3,718.44 points, the Shenzhen Component Index opened down 0.36%, and the ChiNext Index opened down 0.5%. Oil and agribusiness stocks rose against the trend, while defense and gold stocks declined.
Additionally, PBOC Governor Pan Gongsheng officially announced on Monday (19th) at the opening ceremony of the Financial Street Forum Annual Conference that he will jointly launch five major policy initiatives with several financial departments. First, a liquidity support facility will be established together with the National Financial Regulatory Administration and the China Securities Regulatory Commission (CSRC) to address large redemptions by non-bank financial institutions. Second, the scope of institutions eligible for the Standing Lending Facility (SLF) will be expanded. Third, efforts will be made to implement interconnectivity in the bond market. Fourth, pilot programs will further facilitate offshore financial institutions' conduct of RMB purchase and sale business in the domestic foreign exchange market. Fifth, guidance on financial support for building international science and technology innovation centers in Beijing (Jing-Jin-Ji), Shanghai (Yangtze River Delta), and the Guangdong-Hong Kong-Macao Greater Bay Area will be jointly issued with the Ministry of Science and Technology and others.
CSRC Chairman Wu Qing also stated at the Financial Street Forum that efforts will be made to consolidate and improve market-stabilizing mechanisms, remain highly vigilant against new risk points such as leveraged products linked to A-shares overseas, and approve the registration of the first batch of 18 active ETFs, among others. He also indicated that a series of measures, including the steady launch of the Beijing Stock Exchange 50 ETF and market capitalization-based subscription for new listings on the Beijing Exchange, will be rolled out. (ry)
