1) Deposit reserve ratio 1) The proportion of reserves deposited by commercial banks is the reserve ratio.

Deposit reserves mean that the Central Bank (People's Bank of China), in accordance with legal provisions, requires commercial banks to deposit the deposits they absorb into reserve accounts opened at the People's Bank of China in a certain proportion, and regulates commercial banks' use of deposits to issue loans.

control.

The current reserve ratio is 8.5%, which means that if you deposit 100 yuan into the bank, the bank will deposit 8.5 yuan into the People's Bank of China.

2) His role is to control the credit creation ability of commercial banks.

In layman's terms, commercial banks now lend too much, which can easily cause social credit expansion and absorb part of the money into the People's Bank of China.

2) Impact on the stock market The People's Bank of China has decided to raise the RMB deposit reserve ratio for deposit-taking financial institutions by 0.5 percentage points starting from November 15, 2006. What impact will this have on the stock market?

Market participants are divided over this.

Some people believe that this fine-tuning will not change liquidity, while others believe that this move will dim market expectations.

1) Optimists: Abundant liquidity will not change. Although they do not deny the reality of raising the deposit reserve ratio and tightening monetary policy, optimists believe that the adjustment is a "fine adjustment" and has already been expected by the market, so they should pay more attention to it.

The actual effect of this contraction will not have much impact on the stock market.

Jiangsu Tianding Qin Hong pointed out that as an important policy tool for the central bank to regulate currency injection, it will inevitably have a greater impact on the A-share market, among which the impact on bank stocks is the most obvious, because the central bank can recover commercial banks by increasing the deposit reserve ratio.

position and control its credit extension.

Gui Haoming of Shenyin Wanguo even gave the example of Bank of China. After Bank of China is issued, its capital scale will expand rapidly, so its impulse to lend may continue unabated.

Since the situation of abundant capital liquidity will not be reversed, short-term shocks will naturally not reverse the bull market pattern that has been formed.

Mo Guangliang of Orient Securities believes that judging from the current market trends, macroeconomic control expectations are being gradually digested. Although the news of raising the deposit reserve ratio will have a certain impact on the market, he believes that the market will digest this negative news in a volatile manner.

There will be a continuous downward trend.

2) Cautious people: The key lies in the weakening of expectations. Although "0.5 percentage points" may not seem large, judging from the reality that the deposit reserve ratio will be raised soon after the loan interest rate is raised, the government will further control the credit scale and curb the fixed

Confidence in the rapid growth of asset investment has been clearly revealed.

Based on this judgment, cautious people believe that the market will gradually form negative expectations.

Some analysts pointed out that from the perspective of impact, the direct impact is limited, but the policy effects transmitted cannot be ignored, because in less than two months, loan interest rates and deposit reserve ratio increases were introduced successively.

information, thus indicating to the market the determination of macroeconomic control, which will psychologically inhibit the rebound space of the A-share market and the pursuit of bank stocks.

In other words, the direct impact of the policy is tangible and limited, but the indirect impact of the policy, especially the policy guidance conveyed, is intangible and unlimited, so the impact on the A-share market will not be tolerated.

optimism.

The central bank's depositor survey shows that residents' willingness to purchase stock funds has increased significantly, and there are obvious signs that savings funds are flowing to the stock market. However, raising the deposit reserve ratio should not have an impact on the flow of savings funds.

However, Zhu Haibin of Everbright Securities pointed out that it will definitely have an impact on the psychology of institutional investors, making the outlook for macroeconomic policies on the market's periphery slightly uncertain. At the same time, it may make the market further expect policy controls on some industries, and it will also promote excess funds in the market.

Revaluation of this thread has an impact.