China-earthshaking hand to rescue the market

Current world economic recession and save the market has become the two major themes, almost every day from the other end of the earth's bad news almost every day to see the rescue package debut, the stock market is hovering in the low, whether to continue or break up into At the end of a puzzle. China-has been no helping hand to rescue the market, one earth-shaking hand. Two weeks ago, the introduction of the next two years will sell 4 trillion of funds to activate the economy, a move that the parties entered a general mobilization, the subject matter will be brought out of the stock market rebounded strongly, when the subject matter 4 trillion in stock market Entered a "Shenmeipilao", this week the central bank's move is even more shocking: one-year deposit and loan interest rates will be lowered 1.08 points, which means interest rates four times in the past fall, so step up the pace, one step in In the past 10 years, is the first time in history, and the one-year deposit rate fell to 3.60 percent from 2.52 percent, its lowest level in history than the interest rates have decreased the space. The deposit reserve ratio of the sharp decline, its strength is unprecedented, so it's strong medicine, a stimulus to the economy is enormous. First of all, will help reduce business costs. Was a result of the economic downturn trend, the rate of decline is a temporary relief for many companies, reducing the cost of capital, corporate profitability has also increased, the majority of listed companies and raise the value of it. Second, a more liberal capital on the surface. Chinese commercial banks when the maximum absorption of deposits to 17% as a reserve turned over to the Central Bank, now the ratio decreased step by step, which is no doubt commercial banks had relaxed lending, which shares the bank board, in particular small and medium-sized banks plate Is a substantial benefit. Once again, as the interest rate trend is still downward, cut the old bond is a good substantive. Have been cut sharply in the early high-interest bonds held by investors, no doubt, in the near future to obtain a high-yield, if interest rates continue to trend downward, then continue to hold bonds is a wise choice. Yet it must be noted, interest rates decline more, his Notes is less room for profit, the interest income is also the risk of squeezing a cause for concern. Finally, the sharp decline in interest rates will have various types of investment have a significant impact. The benchmark investment income will be reduced to the low return on investment all walks of life expectancy, the current 2.52 percent rate of return of the deposit with the history of the minimum deposit rate of return compared to 27 basis points rate cut as a standard, there are two To cut interest rates three times the space, in particular, is worth pointing out that the demand to lower interest rates by 50%, fell to 0.72 percent from 0.36 percent, which means that investors in the company's securities margin rate also fell to 0.36 percent level, if 1,000,000 yuan in cash securities account on the previous year fixed, the only 3600 yuan of interest, such a low level of interest rates will help encourage investors to the stock market to win the post. The stock market, the rate cut is no doubt more profits, which is the cumulative effect of stacking, when the time comes to cut interest rates, the market will produce from quantitative to qualitative changes of the mutation, the cumulative effect to a certain extent, it will be lying on the bank The rentier class gradually driven out of the bank, to be able to find a higher yield investment channels, turn on the market at this time, it should be said that, in the Shanghai Composite Index (market share it) 2000 points, the way forward This amount of accumulation.