The impact of RRR cuts on coating companies

The RRR cut this time is aimed at the impact of commodity price increases on the production and operation of enterprises... timely use of monetary policy tools such as RRR cuts will further strengthen financial support for the real economy, especially small, medium and micro enterprises, and promote comprehensive financing costs. Stable and down.

The RRR cut this time is more to ease short-term liquidity considerations. As the central bank said, the RRR cut is to hedge against the maturity of the MLF and make up for the liquidity gap caused by the peak of the tax period in mid-to-late July.

Although the new crown epidemic has not disappeared, it has been gradually brought under control. Both the Chinese economy and the world economy are recovering towards normalization.

Developed countries are about to enter an interest rate hike cycle. With the intensification of inflation expectations, the Fed's expectations of raising interest rates and shrinking balance sheets have become increasingly intense, and the capital market has been subject to volatility as a result.

According to market and speculation, the Fed will inevitably return to the track of raising interest rates by 2022 at the earliest and 2023 at the latest. In the context of global interest rate hikes, even if China can maintain considerable monetary policy independence, it is unlikely that it will substantially release water against the trend.

At the same time, the appearance of RRR cuts means that liquidity will no longer be tightened sharply, which also temporarily relieved the stock market and the property market.

The RRR cut isgood for the housing market. Real estate companies will have more funds. In theory, it will promote housing prices. However, in reality, housing prices are mainly affected by supply and demand and policies. The impact of the RRR cut on housing prices is minimal. But it will temporarily put the property market in a balanced state.

It is understood that at present, economic market participants believe that timely RRR cuts have exceeded expectations. If the RRR cut is implemented, it will be beneficial to the equity market.

The RRR cut is to guide the flow of funds into the real economy, and has little to do with the short-term supply of funds in the market. In the medium and long term, the RRR cut will have a positive impact on related industries and listed companies, which will benefit the long-term stable development of the market. The RRR cut has a positive impact on the stock and bond markets. The "listing tide" that has continued some time ago is also a testament to the positive effect of the RRR cut on the stock market.

Essence Securities' analysis of the favorable composition of bank stocks and the real economy for RRR cuts:

First, the RRR cut will improve the bank's return on assets and the cost of liabilities. Of course, it also increases the possibility of further declines in loan interest rates.

Second, in addition to guiding the downward trend in loan interest rates, the medium and long-term funds released by the RRR cut will help strengthen banks' ability and willingness to extend medium and long-term loans to enterprises.
Third, the RRR cut has repaired the bank's interest rate spread trend and profit growth curve to a certain extent. In addition to direct benefits, the RRR cut will also have a positive impact on the potential optimization of bank deposit costs in the future.

The RRR cut promotes new investment opportunities under the "dual-carbon" transformation

In order to further promote green and low-carbon development, the National Standing Committee proposed the establishment of monetary policy tools to support carbon emission reduction to support the development of clean energy, energy conservation and environmental protection, and carbon emission reduction technologies in a steady, orderly, precise and direct manner, and to leverage more Social funds promote carbon emission reduction.