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one arrow pierces the clouds, and many enemies come to meet!

today, the state council information office held a press conference at 9 a.m. the top leaders of one bank, one bureau and one association made important statements and revealed multiple favorable policies.when talking about the establishment of the stabilization fund, pan gongsheng, governor of the people's bank of china, said in response to a question from a securities times reporter after the press conference that "it is under study."after the meeting, a-shares collectively counterattacked. the shanghai composite index rose 2.38% in midday trading, regaining 2,800 points, and the chinext index rose 3.45%. the big financial sector exploded across the board, with securities companies and diversified financial sectors setting off a daily limit surge. the steel, lithium battery, and coal sectors led the gains, and the cpo and computing power sectors followed suit. the market's half-day turnover exceeded 520 billion yuan, and nearly 5,000 stocks were in the green.

the ftse china a50 index futures rose by 3%, and the msci china a50 connect index futures rose by 2.7%. as for hong kong stocks, hong kong stocks continued to rise. as of midday close, the hang seng index rose by 3.28%, and the hang seng technology index rose by 4.19%. weilai and china merchants bank rose by more than 8%, jd.com, haidilao, and nongfu spring rose by more than 7%, and ping an of china rose by more than 6%.

obviously, the market believes that the signal released by this press conference exceeded market expectations. so, how big is the positive impact?

boiling stock market

today's state council information office press conference released a lot of important information, but the market trend occurred after the press conference ended.

the central bank announced an incremental monetary policy, among which the newly established special re-lending tool aims to support listed companies' repurchases and major shareholders' increase in stock holdings, and stabilize the capital market. the central bank announced the creation of securities, funds, and insurance company swap facilities to support qualified securities, funds, and insurance companies to obtain liquidity from the central bank through asset pledges. "swap facilities are not direct money giving, and will not expand the scale of base money."

in addition, when talking about the establishment of a stabilization fund, pan gongsheng, governor of the people's bank of china, said in response to a question from a securities times reporter that it is under study.

after the meeting, the market suddenly surged. all major financial sectors rose, and the shanghai composite index regained 2,800 points. the diversified financial sector rose abnormally, and individual stocks set off a daily limit surge. haide holdings, aichuang group, avic industrial finance, cofco capital, xiangyi rongtong, jiuding investment, hongye futures, nanhua futures, xinli finance, ruida futures, and minmetals capital all hit the daily limit.

brokerage stocks also rose across the board. pacific securities and jinlong securities hit the daily limit, tianfeng securities was close to the daily limit, guohai securities rose more than 9%, guosheng financial holdings rose more than 8%, and capital securities and oriental fortune rose more than 7%.

the performance of weighted sectors such as steel and banks was also very strong, providing great support to the index.

the same is true for the hong kong stock market. the financial sector of hong kong stocks strengthened, with china merchants bank and china pacific insurance rising by more than 6%, citic securities and cicc rising by nearly 5%, and bank of communications, citic construction investment securities, new china life insurance, and huatai securities leading the gains.

the ftse china a50 index futures rose by 3%, while the msci china a50 connect index futures rose by 2.7%.

against the backdrop of a rising us dollar index, the rmb also seems to have been driven by the equity market.

how big is the benefit?

today's market is undoubtedly driven by the heavy signal released at the press conference. so, how big is the positive news?

some securities firms believe that from the perspective of the policy package, first, the interest rate cut of 20bp and the reserve requirement ratio cut of 0.5 percentage points will provide 1 trillion yuan of long-term liquidity, and there may still be room for further reserve requirement ratio cuts in the future. the monetary easing this time exceeded expectations and retained room for further substantial easing in the future. it is worth looking forward to further easing of monetary policy this year.

second, the interest rate of existing mortgage loans will be reduced by about 0.5 percentage points, and the down payment ratio for second mortgage loans will be reduced from 25% to 15%. the substantial reduction in the interest rate of existing mortgage loans will significantly ease the pressure on residents to repay their mortgages, and may, to a certain extent, curb the pressure on residents to repay their loans in advance and drive credit contraction. the signal significance of this operation is greater than its actual significance, and may mean that a series of loose credit policies may be gradually implemented.

third, the establishment of new monetary policy tools to support the stable development of the stock market has released strong intentions and policy signals for invigorating the capital market and enhancing its investment value and financing capabilities.

fourth, overall, the monetary policy support exceeded expectations, which may inject confidence into the previously weak market. loose monetary policy has a strong support effect on stocks, bonds, and commodities. the package of policies to stabilize growth often starts with monetary policy, followed by fiscal policy. pay attention to the possibility of subsequent fiscal policy following the monetary policy.

in addition, a well-known securities firm researcher believes that the above policy reflects the characteristics of promoting the smooth operation of the economy from the monetary policy level. by reducing the deposit reserve ratio, it will further release about 1 trillion yuan of long-term liquidity, which will help create a more abundant funding environment for the real economy. unifying the minimum down payment ratio for first and second home loans has further lowered the threshold for home purchases and created conditions for attracting residents to participate in the property market.

at this stage, the economy is running smoothly, but it is showing a weak performance on the demand side. against the backdrop of relatively resilient external demand, domestic demand is relatively weak. the focus in the next stage will be on whether the capital-side policies can boost the demand side. at the same time, we look forward to the continued efforts of incremental policies on the demand side.

in fact, judging from the content of this press conference, the one that has the greatest impact on the market is that the people's bank of china has created structural monetary policy tools for the first time to support the capital market. one of them is the securities, funds, and insurance companies swap facility, which supports eligible securities, funds, and insurance companies to use their own bonds, stock etfs, and csi 300 constituent stocks as collateral to exchange for high-liquidity assets such as treasury bonds and central bank bills from the central bank. this policy will greatly increase the funds obtained by relevant institutions and increase their stock holdings. the funds obtained by institutions through this tool can only be used to invest in the stock market.

pan gongsheng also revealed that the scale of the first phase of the swap facility operation is 500 billion yuan, and the scale can be expanded in the future depending on the situation. "i told chairman wu qing (of the china securities regulatory commission) that as long as this matter is done well, we can add another 500 billion yuan in the future, or a third 500 billion yuan. we (are open to it)." this means that the liquidity of the entire market will be significantly improved.