Guan Qingyou: lowering the rate helps hedge the downward pressure on the price of risky assets-Shanghai Metals Market

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Guan Qingyou: lowering the rate helps hedge the downward pressure on the price of risky assets

Translation 08:45:37AM Apr 18, 2018 Source:SMM
The content below was translated by Tencent automatically for reference.

SMM News: in response to the central bank released on the evening of 17 news. Guan Qingyou, president of the Financial Research Institute and chief economist, pointed out on his Weibo account that the cut was strong. Although the economy performed well in the first quarter, high-frequency data showed clear signs of decline, capital constraints led to more difficult financing for small and medium-sized enterprises, it is necessary to maintain moderate liquidity; The impact of trade frictions between China and the US is likely to emerge, with a cut in the ratio helping to hedge risks; monetary policy may be marginally looser this year, the pace of regulation may slow and downward pressure on asset prices will ease.

"it's kind of like 2014, when the economy starts to go down and the currency starts to loosen," he said. "it does mean an inflection point."

1. don't say that the quantity, the price, the quantity, the price.

2. don't say it's just a partial reduction, this time it's watermelon, it's sesame.

3. not to mention that most of the replacement MLF, replacement is also loose, the cost of 3% of the medium-term MLF, into almost no cost of the long-term reserve, a long period of time, reducing costs.

4. not to mention the limited incremental liquidity, which will release 400 billion incremental liquidity this time, almost the same as an across-the-board cut in 2015-16.

Will the next 2015 and 2016 go back to the same old path? It's still speculation.

It is true that history does not repeat itself, but it always has the same rhyme.

Guan Qingyou: lowering the rate helps hedge the downward pressure on the price of risky assets

Translation 08:45:37AM Apr 18, 2018 Source:SMM
The content below was translated by Tencent automatically for reference.

SMM News: in response to the central bank released on the evening of 17 news. Guan Qingyou, president of the Financial Research Institute and chief economist, pointed out on his Weibo account that the cut was strong. Although the economy performed well in the first quarter, high-frequency data showed clear signs of decline, capital constraints led to more difficult financing for small and medium-sized enterprises, it is necessary to maintain moderate liquidity; The impact of trade frictions between China and the US is likely to emerge, with a cut in the ratio helping to hedge risks; monetary policy may be marginally looser this year, the pace of regulation may slow and downward pressure on asset prices will ease.

"it's kind of like 2014, when the economy starts to go down and the currency starts to loosen," he said. "it does mean an inflection point."

1. don't say that the quantity, the price, the quantity, the price.

2. don't say it's just a partial reduction, this time it's watermelon, it's sesame.

3. not to mention that most of the replacement MLF, replacement is also loose, the cost of 3% of the medium-term MLF, into almost no cost of the long-term reserve, a long period of time, reducing costs.

4. not to mention the limited incremental liquidity, which will release 400 billion incremental liquidity this time, almost the same as an across-the-board cut in 2015-16.

Will the next 2015 and 2016 go back to the same old path? It's still speculation.

It is true that history does not repeat itself, but it always has the same rhyme.