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【Introduction】China's LPR remains unchanged in August

China Fund News Amman

Just now, the central bank announced that it would not cut interest rates.

On the morning of August 20, the People's Bank of China authorized the National Interbank Funding Center to announce that the loan market benchmark rate (LPR) on August 20, 2024 will be: 1-year LPR is 3.35%, and LPR for more than 5 years is 3.85%, which is the same as last month.

In its second quarter monetary policy report, the central bank stated that LPR quotations have shifted to more reference to the central bank's short-term policy interest rates, and the interest rate transmission relationship from short to long terms is gradually being straightened out.

Last week, Pan Gongsheng of the People's Bank of China said in an interview with the media that while maintaining price stability and promoting a moderate price recovery are important considerations, the policy will remain stable and will not be greatly expanded or contracted.

Analysts believe that the stable LPR is in line with the policy signals sent by the central bank, but at the same time the market is also concerned about whether new stimulus measures will be introduced in the future.

On Tuesday, the central bank also announced that in order to maintain a reasonable level of liquidity in the banking system, it conducted a 7-day reverse repurchase operation of 149.1 billion yuan on August 20 using a fixed-rate and quantity bidding method, with an operating interest rate of 1.7%.

Wind data showed that 385.7 billion yuan of reverse repurchases matured on that day. Based on this calculation, the net amount of money returned on that day was 236.6 billion yuan.

A-shares and Hong Kong stocks turned to decline. Nuclear power, CPO, computing power, semiconductors, and cross-border payment concept stocks rose the most, while virus prevention, AI glasses, online games, and reducer themes weakened.

Editor: Captain

Audit: Wooden Fish

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