Chief Researcher Dong Ximiao of CICC: A moderately loose monetary policy should be prepared in advance, and the need for a reduction in the reserve requirement ratio in the short term is greater.

The meeting of the Central Political Bureau held on April 25 pointed out the need to timely lower reserve requirements and interest rates, maintain ample liquidity, and strengthen support for the real economy. It called for the establishment of new structural monetary policy tools and the creation of new policy-based financial instruments to support technological innovation, expand consumption, stabilize foreign trade, and enhance policy consistency. Dong Ximiao, chief researcher at Zhonglei, stated that although the first quarter financial data is bright, moderately loose monetary policy should still be prepared for and maintained with significant momentum, and if necessary, greater preemptive measures should be taken to continue stabilizing market confidence and expectations.