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The press conference of the Ministry of Finance this time can be described as full of real "wealth", four arrows at the same time, the goal is directly to the key pain points of the economy, the stock market and real estate can be regarded as a temporary relief. What everyone is most concerned about is whether the Ministry of Finance can solve the current predicament and whether the stock market is stable? Is there still a play in real estate?
First of all, the Ministry of Finance's "prescriptions" to local governments and state-owned banks are quite strong. A one-time increase in the debt limit on a larger scale and a replacement of implicit debts for local governments is clearly aimed at reducing pressure on local governments and alleviating their debt problems. This is a crucial step, as if the local government debt crisis continues to worsen, local development could come to a standstill. So, this time the action is to give the place a respite, so that they can free up their hands to get down to business.
Immediately after that, the issuance of special treasury bonds focused on enhancing the capital strength of major state-owned banks. State-owned banks play a huge role in China's economy, relying on them for much of its financial flows, from small and micro enterprises to large-scale infrastructure projects. Banks are more capitalized and can lend more credit, which in turn can better support the real economy. This wave of operations is equivalent to "replenishing calcium" to the financial system, stabilizing banks and indirectly stabilizing market confidence.
Speaking of real estate, the signal of the Ministry of Finance this time is also very clear, and strives to promote the real estate market to stop falling and stabilize through a multi-pronged approach. First of all, special bonds are allowed to be used for land reserves, which is to alleviate the financial pressure of real estate enterprises and avoid the rupture of the land supply chain; Secondly, supporting the acquisition of stock housing and increasing the supply of affordable housing shows that the policy is not only to save housing enterprises, but also to provide more housing security channels for the people. Finally, the optimization of tax policies will directly reduce the burden on home buyers and inject vitality into the real estate market.
This series of policy combinations is indeed prepared. The Ministry of Finance made it clear that real estate is not a dead end, and there is still a glimmer of life. After all, housing is not only a daily necessity for everyone, but also a pillar industry of China's economy. The Ministry of Finance took out "real money" to support the market this time, which can be said to be a "reassurance" for the real estate industry.
The most eye-catching thing is the figure of 37.51 trillion yuan, which feels "violent" just by listening to it. The fiscal deficit arrangement, the new local government special debt limit, and the issuance of ultra-long-term special treasury bonds are all aimed at allowing funds to flow and enhance the internal vitality of the economy. There are concerns about whether the widening deficit will exacerbate the fiscal burden, but the economy is now in a critical period of transition, and an appropriate fiscal expansion is a must.
When it comes to the stock market, this wave of incremental policies has also given the market great confidence. The ups and downs of the stock market have always been linked to policies, and the Ministry of Finance has made a big move, and the economic foundation has stabilized, and the stock market will naturally gradually recover. Although there may be volatility in the short term, in the long run, the foundation for a sustained bull market in the stock market has been laid in this effort.
China's economy is at a critical juncture of internal and external pressures, on the one hand, to resolve its internal debt and real estate problems, and on the other hand, to find new growth points under the global changes. The Ministry of Finance's large-scale investment this time shows that the top management has realized the importance of this "window period". China's economic transformation has reached a critical stage, and domestic demand, industrial upgrading and external cooperation have all pressed the fast-forward button.
Finally, the editor would like to ask: in the face of the four arrows of the Ministry of Finance, do you think the stock market and real estate can really "stabilize"? Will China's economy be able to take this opportunity to fully recover in the future? What do you think about this?