Part 2/13:
On May 7th, a press conference led by Pangong Shen, the governor of the People's Bank of China, revealed a strategy aimed at injecting long-term liquidity into the economy. The central bank cut the reserve requirement ratio for financial institutions by 0.5 percentage points, aiming to provide approximately ¥1 trillion of liquidity to the market. Additionally, the policy interest rate was lowered by 0.1 percentage points, bringing the 7-day reverse repo rate down from 1.5% to 1.4%. Home loan rates saw reductions too, with the first-time borrower rate falling to 2.6% for loans of five years or longer.