Second-quarter expectations for reserve requirement ratio cuts and interest rate cuts are increasing in the industry, with the industry expecting reserve requirement ratio cuts to be implemented first.

On April 25th, the Political Bureau of the Communist Party of China Central Committee held a meeting to analyze and study the current economic situation and economic work. The meeting emphasized the need to "adjust the reserve ratio and reduce interest rates at the right time, maintain ample liquidity, and intensify support for the real economy." Wang Qing, Chief Macro Analyst at Orient Securities, stated that considering the current changes in the external economic and trade environment, the real estate market, and the trend of prices, the timing for "adjusting the reserve ratio and reducing interest rates at the right time" in the second quarter has matured. It is estimated that this round of interest rate cuts may reach 0.3 percentage points; the reserve requirement ratio may be reduced by 0.5 percentage points, releasing long-term funds of 1 trillion yuan. This can effectively stimulate the financing needs of enterprises and residents, promote investment and consumption, and boost market confidence.