The profound meaning of the comprehensive financial policy 924: stabilizing real estate, stabilizing the stock market, stabilizing the economy

Abstract

On the morning of September 24th, the People's Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission jointly introduced a package of financial policies. The capital market responded strongly, with the Shanghai Composite Index and the ChiNext Index closing up by 4.15% and 5.54% respectively on that day. The price of rebar futures rose by 3.21%, the 10-year government bond yield increased, the RMB to USD exchange rate strengthened, reflecting significantly boosted market expectations and confidence in the positive outlook for the Chinese economy.

Specifically, the package of financial policies mainly includes three key components:

First, reserve requirement ratio cut and interest rate reduction, with a 0.5 percentage point reduction in the reserve requirement ratio and a 0.2 percentage point reduction in the 7-day reverse repurchase operation rate. On one hand, given the insufficient domestic effective demand, persistent low inflation, and high real interest rates, there is a need for further supportive monetary policy adjustments. On the other hand, with relatively ample monetary policy space and the Fed's rate cuts easing external constraints, banks can maintain stability in net interest margins through reserve requirement cuts and guiding deposit rate reductions.

Second, stable real estate policies, including lowering existing home loan rates, accelerating destocking in the real estate market, and easing liquidity pressures on real estate enterprises. (1) Lowering existing home loan rates to levels near new loan rates, with an average expected reduction of around 0.5 percentage points, which will help reduce residents' interest burdens, decrease early repayment instances, and enhance consumer spending power. (2) Stimulating real estate demand to stabilize and revive the real estate market: firstly, through reserve requirement cuts and interest rate reductions to guide mortgage rate decreases, with an expected reduction of 0.2 to 0.25 percentage points; secondly, lowering the minimum down payment ratio for second homes to 15% to support demand for improved housing; thirdly, increasing the central bank's contribution ratio from 60% to 100% in the policy of refinancing affordable housing, enhancing market incentives for banks and acquiring entities, and further supporting local governments in destocking existing homes. (3) Supporting real estate financing to ease debt and liquidity pressures on real estate enterprises: firstly, extending policies such as refinancing existing financing for real estate enterprises and operational property loans to the end of 2026; secondly, supporting the acquisition of existing land by real estate enterprises to revitalize their existing assets.

Third, stable stock market policies. (1) At the central bank level, two new monetary policy tools have been introduced to support the capital market. Firstly, the "Securities Fund Insurance Company Swap Facility", which is similar to central bank bill swaps, adopts a "securities for securities" mechanism, allowing non-bank institutions to pledge illiquid assets in exchange for the central bank's highly liquid assets (government bonds, central bank bills), with an initial quota of 500 billion. This tool can revitalize the stock and fund companies' existing assets, incentivize their active participation in the market, boost market activity, stabilize the market, and prevent non-bank institutions from "cashing out" due to liquidity issues. Secondly, the "Special Rediscount for Repurchase and Stock Increase", similar to tools like special rediscount for equipment upgrades and renovations, adopts a "lend first, borrow later" approach, where commercial banks first provide listed companies with loans at preferential rates, then obtain rediscount funds from the central bank, with an initial quota of 300 billion. The "Special Rediscount" aims to guide commercial banks to lend to listed companies or major shareholders through incentive-compatible mechanisms for repurchasing and increasing stock holdings Central Bank's Direct "Exit" Trading of Stocks Compared to Following Market-Oriented Processes, Will Not Lead to Moral Risks, Price Distortions, etc. (2) At the CSRC Level, Further Support for Long-Term Funds to Enter the Market and Encourage Mergers and Acquisitions is Proposed. Soon to be released are the "Guiding Opinions on Promoting the Entry of Medium and Long-Term Funds into the Market" and the "Opinions on Deepening the Market Reform of Mergers and Acquisitions of Listed Companies" to improve institutional design. Specific measures include enriching fund products, reducing fund fees, etc. (3) At the level of the China Banking and Insurance Regulatory Commission, Financial Asset Investment Companies Become a "New Lever" for Supporting Entrepreneurial Investment within the Banking System, by expanding pilot areas, relaxing investment restrictions, optimizing assessments, and enhancing support measures.

It is worth noting that regulatory authorities have strengthened the guidance on future policies, implementing the "Improvement of Expectation Management Mechanism" proposed at the Third Plenary Session of the Twentieth Central Committee. For example, the Central Bank clearly stated: "Depending on the market liquidity conditions this year, we may further reduce the reserve requirement ratio by 0.25-0.5 percentage points." "Next, we are also considering guiding commercial banks to improve the pricing mechanism for mortgage loans, allowing dynamic adjustments based on market principles through autonomous negotiations between banks and customers." "We plan to start with a swap facility of 500 billion yuan, which can be expanded in the future depending on the situation. As long as this matter is handled well, the first 500 billion yuan, another 500 billion yuan can be added, and even a third 500 billion yuan can be arranged. I think it's all possible, it's open." and so on.

I. Stable Growth: Reserve Requirement Ratio Cut by 0.5 Percentage Points, Interest Rate Cut by 0.2 Percentage Points

On September 24th, the Central Bank decided to cut the reserve requirement ratio by 0.5 percentage points, providing about 1 trillion yuan of long-term liquidity to the financial market; and lowered the 7-day reverse repurchase operation rate by 0.2 percentage points, from 1.7% to 1.5%.

(I) Lowering the Reserve Requirement Ratio and Interest Rate is an Inevitable Requirement for Stable Growth

The main contradiction in the current economy is the imbalance between supply and demand caused by insufficient domestic effective demand, leading to a deviation between actual economic growth and nominal growth, a deviation between macro data and micro feelings, which has had a certain impact on boosting expectations and confidence, consumption, and investment.

From the economic data of July-August, the year-on-year GDP growth rate in the third quarter may be lower than the 4.7% in the second quarter, affecting the realization of the annual economic growth target of "around 5%". Although the effects of policies such as large-scale equipment renewal, consumer goods replacement, relaxation of real estate regulation, accelerated issuance and use of government bonds have been evident, resident consumption, corporate investment, local infrastructure investment, real estate market, etc., have not effectively stabilized and require greater policy support.

Real interest rates are still high, and supportive monetary policies need to further increase control efforts. In the second quarter of 2024, the weighted average interest rate for RMB loans by financial institutions was 3.7%, reaching a new low since 2008; however, due to continued low inflation, the real interest rate after subtracting the GDP deflator was 4.4%, still at a historical high, suppressing resident consumption and corporate investment, indicating that monetary policy should further exert efforts, lowering reserve requirements where necessary and interest rates to boost demand for resident consumption and corporate investment

(2) Relatively Adequate Monetary Policy Space, Fed Rate Cuts Ease External Constraints

Currently, the weighted average reserve requirement ratio for financial institutions is 7%. After the implementation of reserve requirement ratio cuts, the average reserve requirement ratio for banks is approximately 6.6%. Compared with the central banks of major economies internationally, there is still room for further reduction. The central bank has indicated that it may further reduce the reserve requirement ratio by 0.25-0.5 percentage points later this year depending on market liquidity conditions.

Maintaining stability in commercial banks' net interest margins after rate cuts. On one hand, reserve requirement cuts can provide commercial banks with low-cost long-term funds; on the other hand, symmetric interest rate cuts will also reduce the liability costs of commercial banks. MLF and open market operations are the main channels for commercial banks to borrow medium-term funds from the central bank. The decrease in policy rates will lower the cost of bank funds; through the interest rate self-discipline mechanism, deposit rates will also be lowered accordingly to maintain the stability of bank net interest margins. It is expected that after this adjustment in policy rates, the MLF rate will decrease by around 0.3 percentage points, and the expected LPR, deposit rates, etc., will also decrease by 0.2 to 0.25 percentage points.

In September, the Fed began a rate-cutting cycle, causing US bond yields and the US dollar index to trend downwards, reducing pressure on the RMB exchange rate and thereby easing constraints on China's reserve requirement ratio cuts and interest rate reductions.

2. Stabilizing the Real Estate Market: Lowering Existing Home Loan Rates, Accelerating Inventory Clearance, Easing Liquidity Pressure on Real Estate Enterprises

The continued downturn in the real estate market is a major drag on the current economic recovery. From January to August, the cumulative year-on-year decline in sales of commercial housing and real estate investment was 23.6% and 10.2% respectively; in August, the year-on-year decline in prices of new and second-hand homes in 70 large and medium-sized cities was 5.7% and 8.6% respectively. In addition, issues such as early repayment by residents, tight liquidity for real estate enterprises, and reduced local government land transfer income are also unfavorable for economic and financial stability.

(1) Lowering existing home loan rates: Reducing residents' interest burden, reducing early repayment, and enhancing residents' consumption capacity

There are two main differences between this round of lowering existing home loan rates and the first round in August last year: First, the scope of benefits is broader. Last August, it only targeted first-home loans, while this time it includes all existing home loans; Second, the rate cut is more direct. Last August, the requirement was that the interest rate level for new loans should not be lower than the lower limit of the original loan interest rate, which may still require a relatively high markup. This time, it is directly reduced to near the interest rate of new loans.

It is expected that the average reduction in existing home loan rates this time will be around 0.5 percentage points. Home loan rates consist of two parts: LPR and markup, and the reduction in existing home loan rates mainly targets the markup part. By the end of 2023, the weighted average interest rate for existing home loans was 4.27%. Considering that from January 2023 to September 2024, the 5-year LPR has decreased by a total of 0.45 percentage points, the implied average interest rate for existing home loans should be around 3.82% at present In the second quarter of 2024, the weighted average interest rate for personal housing loans was 3.45%. With the 5-year LPR dropping by 0.1 percentage point on July, the current average interest rate for new loans is around 3.35%. Compared to the existing housing loan rate of 3.82%, there is a potential reduction space of about 0.5 percentage points.

Reducing the interest rate on existing housing loans will help alleviate residents' interest burden, reduce early repayment phenomena, and enhance residents' consumption capacity. It is estimated that the policy will benefit 50 million households, 150 million people, reducing the total interest expenses of households by approximately 150 billion yuan per year, helping to increase residents' disposable income, boost consumer spending; after the reduction in existing housing loan rates, the interest rate differential between existing and new housing loan rates, as well as financial returns, will significantly narrow, helping to weaken residents' motivation for early repayment, curb illegal replacement of existing housing loans, stabilize the scale of bank housing loans, and reduce financial risks.

Adjusting existing housing loan rates may further institutionalize and become dynamic. The central bank stated: "Next, we are also considering guiding commercial banks to improve the pricing mechanism for mortgage loans, allowing banks and customers to dynamically adjust based on market principles." Once the system is established and improved, future adjustments to existing housing loan rates may not need to wait for special policies to be issued, but will follow the timely changes in new housing loan rates.

(II) Accelerating destocking in the real estate market: lowering housing loan rates, reducing the minimum down payment ratio for second homes, further supporting local governments in inventorying existing housing

The central bank has taken three measures to accelerate the stabilization and recovery of the real estate market, essentially ensuring that all policies are fully implemented.

First, reserve requirement ratio cuts and interest rate reductions to guide the decline in housing loan rates. After the new real estate policies on May 17th, the central bank abolished the national minimum interest rate policies for first and second home loans. Therefore, the central bank will adjust housing loan rates mainly through reserve requirement ratio cuts and interest rate reductions, guiding the LPR to decrease, which will then be transmitted to housing loan rates. This time, the central bank cut interest rates by 0.2 percentage points, and it is expected that the LPR will decrease by 0.2 to 0.25 percentage points accordingly, leading to a similar reduction in housing loan rates, reducing the cost of home purchases for residents and stimulating housing demand.

Second, lowering the minimum down payment ratio for second homes to support demand for improved housing. After the new real estate policies on May 17th, the minimum down payment ratios for first and second homes were adjusted to 15% and 25%, respectively. This policy no longer distinguishes between first and second homes, with a unified minimum down payment ratio of 15%. The reduction in the minimum down payment ratio for second homes will help lower the threshold for residents' demand for improved housing, activating the real estate market.

Third, increasing the central bank's contribution ratio in the refinancing policy for affordable housing, further supporting local governments in inventorying existing housing. After the new real estate policies on May 17th, the central bank established a 300 billion yuan refinancing policy for affordable housing, guiding financial institutions to support local state-owned enterprises in purchasing completed but unsold commercial housing at a reasonable price, for use in the distribution or rental of affordable housing However, the policy effect is relatively limited. As of the end of June, only 12.1 billion yuan was used for re-loans for affordable housing. In order to further enhance the market-oriented incentives for banks and acquiring entities, the central bank has increased the central bank's contribution ratio in the re-loans for affordable housing from the original 60% to 100%, accelerating the destocking process of commercial housing.

(3) Alleviating liquidity pressure on real estate enterprises: Extending the "Financial 16 Measures", operating property loan policy period, supporting the acquisition of existing land by real estate enterprises

Currently, real estate enterprises still face debt and liquidity risks, affecting residents' confidence in buying houses, real estate enterprises' ability to acquire land and build houses, bank loan security, etc. The central bank and the China Banking and Insurance Regulatory Commission actively support real estate enterprises in obtaining reasonable financing to prevent and resolve real estate risks.

Firstly, extending the period of the "Financial 16 Measures" and operating property loan policy period to alleviate the pressure of real estate enterprises' debt maturity. In the "Financial 16 Measures", for existing financing such as development loans and trust loans for real estate enterprises, financial institutions are allowed to support them by extending existing loans and adjusting repayment arrangements; commercial banks providing financing for special projects are not allowed to downgrade risk classification within the loan period, and after the division of debt into old and new, the lending entities are managed according to qualified borrowing entities. In the new regulations for operating property loans, commercial banks are allowed to provide operating property loans to well-managed real estate development enterprises with good development prospects to repay related loans in the real estate sector and public market bonds of the enterprise and its group holding companies (including consolidated subsidiaries). The above policies are all set to expire by the end of 2024. The central bank and the China Banking and Insurance Regulatory Commission have decided to extend the stage policies such as extending existing financing for real estate enterprises and operating property loans until the end of 2026, which is conducive to promoting the stable and healthy development of the real estate market and resolving risks in the real estate market.

Secondly, supporting the acquisition of existing land by real estate enterprises to revitalize their existing assets. The central bank proposes to use some local government special bonds for land reserves and study allowing policy banks and commercial banks to provide loans to support conditionally enterprise market-oriented acquisitions of real estate enterprises' land, revitalizing existing land use and easing the financial pressure on real estate enterprises. When necessary, the central bank can also provide re-loan support, a policy that the central bank and the China Banking and Insurance Regulatory Commission are still studying together.

3. Stabilizing the stock market: Establishing monetary policy tools to support the capital market, encouraging long-term funds to enter the market, and encouraging the banking system to support venture capital investment

Since the beginning of this year, due to reasons such as the unstable foundation of economic recovery, insufficient effective demand, and weak confidence of micro entities, the A-share market has performed relatively weakly, with major broad-based indices all falling. As of September 23, the Shanghai Composite Index fell by 7.6% and the CSI 300 fell by 6.4%. Currently, there are signs of continuous fermentation and self-reinforcement of pessimistic expectations in the capital market, which may constrain consumer spending through wealth effects and restrict corporate investment, negatively impacting the real economy. Therefore, boosting the stock market and stabilizing confidence are crucial.

It can be seen that nurturing the stock market and providing liquidity are major highlights of this press conference. Whether it is the central bank, the China Securities Regulatory Commission, or the China Banking and Insurance Regulatory Commission, they have all introduced heavyweight measures to support the healthy development of the capital market in their respective areas of responsibility （1）Central Bank: Creating Two Major Monetary Policy Tools to Support the Capital Market

1. Establishing a convenient swap mechanism for securities, funds, and insurance companies to ensure relatively ample liquidity for non-bank institutions.

First, the mechanism of "swap convenience" is "exchange with securities." According to Governor Pan Gongsheng's remarks, securities, funds, and insurance companies can use eligible bonds (credit bonds), stock ETFs, SSE 300 index stocks, and other assets as collateral to exchange for central bank bonds, central bank bills, etc., to obtain liquidity support. In other words, non-bank institutions use low-liquidity assets as collateral to exchange for high-liquidity assets from the central bank.

Second, both overseas experience and China's practice have similar tools to "swap convenience." The Federal Reserve introduced the Term Securities Lending Facility (TSLF) during the 2008 financial crisis, allowing primary dealers to use less liquid securities as collateral to borrow highly liquid Treasury securities from the Federal Reserve, facilitating financing in the market and boosting market confidence. A similar tool in China is the Central Bank Bills Swap (CBS) launched in 2019, allowing primary dealers to swap perpetual bonds for central bank bills. This tool enhances the market liquidity of perpetual bonds, increases market willingness to subscribe to perpetual bonds (holding perpetual bonds is equivalent to holding central bank bonds), supports banks in issuing perpetual bonds to supplement capital, and creates favorable conditions for increasing financial support to the real economy.

Third, "swap convenience" does not involve the injection of base currency. "Swap convenience" is not "lending convenience," as the central bank does not directly provide funds to non-bank institutions, thus not injecting base currency. Additionally, China's "People's Bank Law" explicitly prohibits the central bank from providing loans to non-bank financial institutions (except for designated institutions by the State Council).

Fourth, the national bonds and central bank bills obtained by non-bank institutions from the central bank through "swap convenience" are highly unlikely to be resold, and can only be used to obtain liquidity as collateral. According to the rules of the central bank bills swap tool, "the swapped central bank bills cannot be used for spot transactions, repurchase agreements, etc., but can be used as collateral, including as collateral for institutions participating in central bank monetary policy operations." Since "securities fund insurance company swap convenience" is similar to the "central bank bills swap tool," we infer that assets obtained from the central bank such as national bonds cannot be directly traded. In other words, there is no chain of "buying stocks - exchanging bonds with the central bank - selling bonds."

Fifth, the initial operation scale of "swap convenience" is 500 billion yuan. If the evaluation shows positive results, there may be second and third rounds.

Sixth, the main effects of "swap convenience" are twofold: first, by revitalizing the existing assets of securities, funds, and insurance companies, it incentivizes their active participation in the market, promotes market activity, and stabilizes the market. Second, it prevents non-bank institutions from "cashing out and exiting" due to liquidity issues, avoiding market stampedes caused by homogenized transactions and redemption pressures. 2. Establish a "special rediscount loan" to support stock repurchases and increases, encourage listed companies to repurchase shares, and help build the investment side of the capital market.

• Firstly, the mechanism of the "special rediscount loan" is "lend first, borrow later." The role mechanism of the "special rediscount loan" that supports stock repurchases and increases is consistent with other structural monetary policy tools such as the "equipment upgrade and renovation special rediscount loan." Commercial banks first provide listed companies with loans at preferential interest rates, and then obtain rediscount funds from the central bank to support them. Listed companies use the obtained loans for share repurchases.

• Secondly, the "special rediscount loan" will result in base currency injection, but it has significant differences compared to central bank direct "market intervention" in stock trading, such as the People's Bank of China directly buying and selling stocks. The "special rediscount loan" guides commercial banks to lend to listed companies or major shareholders for share repurchases and increases through incentive-compatible mechanisms. This process is market-oriented, with commercial banks making independent decisions, thus avoiding moral risks and issues of interest transmission. If the central bank directly intervenes in stock trading, buying low and selling high, it will face criticism for wealth redistribution; buying high and selling low will raise questions about interest transmission. In addition, direct central bank stock trading will distort market pricing mechanisms and face difficulties in exiting, while the approach through "special rediscount loans" avoids these issues or is more suitable for the current situation in China.

• Thirdly, the initial quota for the "special rediscount loan" supporting stock repurchases and increases is 300 billion yuan, with the possibility of further increases in the future.

• Fourthly, the "special rediscount loan" is conducive to guiding listed companies to further increase their repurchase efforts, thereby enhancing investor satisfaction and increasing the long-term attractiveness of the stock market. Listed companies repurchasing shares with cash consideration through tender offers or centralized bidding are considered equivalent to cash dividends by listed companies. In simple terms, repurchases are equivalent to cash dividends and play a role in optimizing capital structure, maintaining company investment value, and improving investor return mechanisms.

• Overall, the two new tools connect banks, non-bank institutions, and listed companies, the main participants in several markets, through central bank support, incentivizing these entities to actively participate in market transactions, discover value, maintain market stability, and gradually materialize the long-term stability mechanism of the capital market.

(II) China Securities Regulatory Commission: Encouraging long-term funds to enter the market, and two "opinions" will be issued

1. Further support for long-term funds to enter the market will be released in the near future, with the issuance of the "Guiding Opinions on Promoting the Entry of Medium and Long-Term Funds into the Market."

   • Firstly, vigorously develop equity mutual funds. Whether it is long-term stable institutional investors such as pension funds and retirement funds, or individual investors, when engaging in long-term index investments or other investment portfolio strategies, they cannot avoid fund products. This requires vigorous development of equity funds to promote the high-quality development of the public fund industry. On the one hand, increase product supply, improve the efficiency of index fund development, further enrich indices and products based on the recent A500ETF, and moderately introduce small and medium-cap ETF fund products. On the other hand, continuously optimize the fee model of public funds and reduce the industry's comprehensive fee level. At the same time, establish an "anti-cyclical layout incentive constraint mechanism" to encourage fund managers to assess product issuance pace during market high periods and counter-cyclically layout during low periods to stabilize market fluctuations Second, improve the institutional environment for "long-term and long investment". For example, fully implement a long-term assessment of more than 3 years to enhance regulatory inclusiveness.

Third, crack down severely on various illegal activities to shape a good market ecosystem where medium and long-term funds are "willing to come, stay, and develop well".

Fourth, increase the efforts of "national team" such as Central Huijin in increasing holdings in the stock market. Since the beginning of this year, funds such as Huijin and China Investment Corporation have entered the market through ETFs, becoming a "ballast stone" for the market. The total size of ETFs held by Central Huijin has increased from about 110 billion yuan at the beginning of the year to about 570 billion yuan by the end of the second quarter, accounting for nearly 30% of the total size of stock-type ETFs.

1. Support corporate mergers and acquisitions to further promote efficient allocation of resources, and will introduce the "Opinions on Deepening Market Reform of Mergers and Acquisitions of Listed Companies".

First, further clarify the direction of encouragement for mergers and acquisitions. One is cross-industry mergers and acquisitions based on the goal of transformation and upgrading, and the other is the acquisition of non-profitable assets that help to supplement and strengthen the chain, and enhance the level of key core technologies.

Second, significantly simplify the review process and enhance regulatory inclusiveness. Increase inclusiveness based on actual situations regarding valuation of reorganizations, performance commitments, inter-industry competition, related transactions, etc.

Third, enrich the tools for paying consideration. Use tools such as issuing shares and convertible bonds in installments, paying consideration in installments, and financing in installments to further enhance transaction flexibility and fund utilization efficiency.

(III) China Banking and Insurance Regulatory Commission: Promoting state-owned large banks' financial asset investment companies to better support venture capital investment

First, financial asset investment companies become a "new lever" for supporting venture capital investment in the banking system. Financial asset investment companies established by large commercial banks were initially created to address the banks' non-performing assets and resolve financial risks. The "Guiding Opinions on Supporting High-level Technology Self-reliance in the Banking and Insurance Industry" issued in December 2021 allows the pilot implementation of equity investment in technology companies not aimed at debt-to-equity swaps. As of now, China's five major banks, ICBC, ABC, BOC, CCB, and BOCOM, all have wholly-owned financial asset investment companies, namely ICBC Investment, ABC Investment, BOC Asset, CCB Investment, and BOCOM Investment. Before Beijing was included in the pilot scope on August 29, 2024, the pilot scope of financial asset investment companies' equity investment was limited to Shanghai.

Second, in recent years, bank-owned financial asset investment companies have been active in the equity investment market. For example, in June 2023, ICBC Investment and such as such as such as jointly invested to establish a 20 billion yuan Suzhou Industrial Innovation Cluster Fund-of-Funds; in August 2024, ICBC Investment established three funds including Green Industry Finance Investment Green Energy Equity Investment Partnership Enterprise, Green Industry Finance Investment Green Energy Equity Investment Partnership Enterprise, and Beijing National Energy Industry Finance Strong Chain Equity Investment Fund, with a total investment of 26 billion yuan.

Third, the China Banking and Insurance Regulatory Commission plans to promote the efforts of financial asset investment companies to support technological innovation and venture capital investment through measures such as expanding the pilot scope, relaxing investment restrictions, and optimizing assessments. One is to expand the scope of pilot cities from the original Shanghai to 18 large and medium-sized cities with active technological innovation Second, appropriately relax the limits on the amount and proportion of equity investments, increasing the proportion of on-balance sheet investments from the original 4% to 10%, and the proportion of investments in a single private equity fund from the original 20% to 30%. Third, optimize performance evaluation and establish a sound long-term, differentiated performance evaluation system. The implementation of these measures will, on the one hand, introduce long-term capital into the primary market, expanding the sources of funding for VC/PE; on the other hand, it will help to deeply explore the potential of the indirect financing system for entrepreneurial investment and technological innovation, better supporting the high-quality development of the real economy.

Author: Luo Zhiheng S0300520110001, Ma Jiajin, Yuan Ye; Source: Yuekai Zhiheng Macro; Original Title: "The Profound Meaning of the Comprehensive Financial Policies on September 24: Stabilizing Real Estate, Stock Market, and Economy"