News description
The following is the official announcement issued by the central bank:
In order to further support the development of the real economy, optimize the liquidity structure of commercial banks and financial markets, reduce financing costs, and guide financial institutions to continue to increase support for small and micro enterprises, private enterprises and innovative enterprises, the People's Bank of China decided that from 2018 From October 15th, the RMB deposit reserve ratio of large commercial banks, joint-stock commercial banks, city commercial banks, non-county rural commercial banks and foreign banks will be lowered by 1 percentage point. The medium-term loan facilities (MLF) due on the day will not be renewed. .
The People's Bank of China will continue to implement a prudent and neutral monetary policy, not to engage in floods, to reorient and control, to maintain a reasonable and sufficient liquidity, to guide the rational growth of monetary credit and social financing, and to create a high-quality development and supply-side structural reform. A suitable monetary and financial environment.
Purpose of RRR
This is the third rate cut since 2018. In April and June 2018, the central bank reduced the reserves by 100 and 50 basis points respectively. The central bank once again lowered the benchmark by 100 basis points. Since the beginning of this year, the statutory deposit reserve ratio has been reduced by 250 basis points.
After the RRR cut, the reserve ratios of large and medium-sized deposit-type financial institutions were 14.5% and 12.5% respectively. The RRR cut will release about 1.2 trillion yuan, of which MLF450 billion will be repaid on October 15, and 750 billion yuan will be released. According to the official statement of the central bank, the purpose of this RRR reduction is to support the development of the real economy by reducing the financing costs of SMEs, and to optimize the liquidity structure of commercial banks and financial institutions.
Qualified background
The macro background of this RRR cut is a further slowdown in the growth rate of the real economy. In the third quarter of 2018, China's GDP growth rate will fall back to 6.6%, while the fourth quarter may fall further to around 6.4%. The deepening of Sino-US trade friction will further weaken the contribution of the import and export sector to economic growth. The decline in export growth due to the impact of trade friction will affect the growth rate of manufacturing investment.
The financial background of this RRR cut is that the financing difficulty of SMEs is still relatively large. Although one of the purposes of the two central banks' previous targeted RRR cuts was to promote SME financing. However, in the process of strict financial regulatory environment and a large return of bank assets, commercial banks usually tend to reduce credit support for SMEs. In the past few months, the growth rate of total social financing has been much lower than that of RMB loans, and the growth rate of M1 has continued to be lower than that of M2. The facts behind it all reflect that the difficulty of financing for SMEs may not decrease.
What is the impact on the textile industry?
1. The government's determination to implement a prudent monetary policy has given textile companies a "reassuring".
2. It is conducive to solving the financial problems of textile enterprises, and credit support will be strengthened.
3. With the central bank, government funds and government's concerns shift to thousands of small and micro enterprises, especially to speed up the "debt-to-equity swap", the tight cash flow pressure of textile companies is expected to be effectively alleviated.
4. Stimulate the consumption of domestic textiles and clothing, and form a positive result for the entire industry.
5. The liquidity is appropriate and lenient. It is good for the people to invest and borrow. At least the cost of borrowing will not rise further, and may even decline in the future. Therefore, in the case of stable financing costs and recovery of market confidence, domestic consumption And investment is expected to go out of the trough, the production and sales of small and micro enterprises such as textiles and clothing will be fully restored and even enter the "fast lane". Stable production and consumption promotion become a top priority.
It is believed that under the influence of favorable policies such as lowering the RRR, raising the export tax rebate, and lowering the MFN tariff rate of goods, textile people will be able to get out of the trough, and this winter of textile manufacturing will no longer be difficult!