Chief economist of CITIC Securities Ming Ming: On the premise of taking into account the domestic and foreign policy environment, it is appropriate to implement reserve requirement ratio cuts, interest rate cuts, or timely measures.

The Central Political Bureau meeting held on April 25 pointed out the need to timely lower the reserve requirement ratio and interest rates, maintain ample liquidity, and strengthen support for the real economy. Ming Ming, the chief economist of CITIC Securities, believes that the monetary policy proposal of "timely lowering the reserve requirement ratio and interest rates" will support consumption, technology, and structural tools for incremental quantity. "The Central Political Bureau meeting has set a more proactive tone for macroeconomic policies, while the monetary policy continues the tone of 'moderate easing,'" Ming Ming analyzed. Specifically in terms of the total tools of monetary policy, the meeting requires to "timely lower the reserve requirement ratio and interest rates, maintain ample liquidity, and strengthen support for the real economy." It is expected that, based on considering the domestic and international policy environment, tools for lowering reserve requirements and interest rates may be implemented in a timely manner. At the level of structural tools of monetary policy, the meeting requires to "create new structural monetary policy tools, establish new types of policy financial instruments," mainly targeting areas such as "technological innovation, expanding consumption, and stabilizing foreign trade."