The central bank has issued multiple financial policies to support high-quality economic development.

People's Bank of China Governor Pan Gongsheng announced a series of financial policies at a press conference on September 24 aimed at supporting high-quality economic development. The main measures include:

1. Reduction in Reserve Requirement Ratio (RRR) and Interest Rates: The RRR will be cut by 0.5 percentage points, releasing approximately 1 trillion yuan in long-term liquidity. The central bank's policy interest rate will be reduced by 0.2 percentage points, guiding market interest rates downward.

2. Lowering Existing Mortgage Rates: Guiding commercial banks to reduce existing mortgage rates to levels near new mortgage rates, with an expected average reduction of 0.5 percentage points, benefiting 50 million households and reducing annual interest expenses by about 150 billion yuan.

3. Creation of New Policy Tools: Supporting the development of the stock market, including facilitating swaps between securities, fund, and insurance companies, and providing loans for stock buybacks and增持. The initial swap facility operation will be 500 billion yuan, with the first tranche of loans at 300 billion yuan.

4. Optimizing Treasury Bond Issuance: The central bank will buy and sell treasury bonds in the secondary market to optimize the issuance pace and maturity structure.

5. Improving Mortgage Loan Mechanisms: Banks and customers will negotiate and dynamically adjust mortgage rates based on market principles.

Pan Gongsheng emphasized that the central bank respects the role of the market but needs to assess market risks from a macro-prudential management perspective to maintain a good order in the bond market.

Personal Insight: These policies demonstrate the central bank's firm support for economic recovery by lowering financing costs and optimizing the financial environment, boosting market confidence. The newly created policy tools, particularly those supporting the stock market, are expected to enhance capital market vitality and promote economic structural optimization. However, the implementation of these policies must be cautious to ensure risks are manageable and to avoid excessive stimulus leading to new problems.