Re-freezing 358.1 billion capital tightening cycle established

The central bank yesterday announced a 0.5% per cent reserve requirement for deposit-taking financial institutions since 16th, when inflationary pressures were high. This is the central bank after the October 20 rate hike, the monetary policy again tightened.　　After the 4th increase in the year, the domestic reserve requirement ratio has been at a record high of 17.5% in 2008.　　Many economists said the central bank's choice to raise the reserve requirement ratio on the eve of the CPI show its intention to curb domestic inflation by tightening monetary policy. The reserve requirement rate reached a record high and the central bank announced a rate hike before the CPI data were released in September, and the central bank yesterday raised its reserve requirement ratio to curb domestic inflationary pressures, in the context of a October macroeconomic data release today.　　Many institutions forecast a October CPI rise of more than 4%. This year, the central bank has raised the reserve requirement ratio 3 times, with reserve requirements rising from 15.5% in the year to 17%.　　After the increase, the central bank's reserve ratio has reached a record high of 17.5%, similar to the June 2008 level.　　According to the central bank's previous three-quarter financial Statistics Report 2010 years ago, the balance of foreign currency deposits at the end of September is 71.63 trillion yuan, which means the central bank will raise the reserve requirement ratio of 0.5% to tighten liquidity by 358.1 billion yuan. A-share in the medium-term upward trend from yesterday's stock market reaction, in the central bank to adjust the deposit reserve ratio of rumors, financial, real estate weight plate plunged, the stock index on the weak, the Shanghai and Shenzhen, the afternoon concussion adjustment. As of the closing, the Shanghai Composite Index reported 3115.36 points, or 0.63%, and exponentially reported 13705.68 points, or 0.06%.　　And in the deposit reserve ratio adjustment of the news, the industry generally believe that the move on the short-term composition of the market bad, but the overall impact will not be too big. Mao Rui said that the central bank to raise the deposit reserve ratio, the most direct result is to reduce the amount of the supply of circulating money, resulting in higher interest rates, which on the cost of debt and the rate of return of money is a pressure, so will be real estate stocks, banks, insurance stocks and other plate formation. On the other hand, as banks and property valuations are lower, the impact is limited. Mao Rui said that, because the bank, the real estate several big plate occupies the market value weight to be very big, expected the market short-term will present the concussion adjustment pattern.　　But the stock market is driven by money, and the current market in the hot money inflow expectations and bullish sentiment pushed up, the stock market line is expected to continue to climb the pattern.　　Li Dahuan, director of the British Securities Institute, said that the current index after a sharp rise in the demand for their own adjustment, prev tie with 3,200 points of resistance area, the stock market is expected to cause a certain shock in the short term, but from a long-term perspective, will not have a very big impact. Morning News reporter Yanqing Li Lingjing Wang Lixian Point of view set to show the central bank's determination to curb inflation Du Zhenzheng Du Zhenzheng said the increase in reserve ratio is based on the October CPI will be again high and in the nextThe measures taken in the time will still be high, showing the central bank's determination to curb inflation.　　He admits that the increase in reserve requirements will freeze more than 350 billion deposits, which have both substantial and strong signaling effects on the market. Du Zhenzheng that the last one or two months should be the observation period of interest rate hikes, both to observe the economic trends, but also to observe the inflation level.　　He said mid-December was the key period for the central bank to assess the effect of interest rate hikes and decide on the next steps, and that the December and the full year would be around January 22 next year, a crucial time window. Do not rule out December again interest rate Zuo "The central bank will follow a continuous monetary control policy." At the current pace, it is likely that a currency regulation will be held in December, not excluding the possibility of a hike.　　"Zuo said.　　Zuo that although the central bank tightening more than 300 billion yuan liquidity to control the CPI further rise will play a role, but the number of dispersed is not huge, a currency regulation will not have a clear effect on CPI, and macro-control policy is more unlikely to one-step. Developer loans will be affected easily by the Constitution, the central bank's move is intended to use monetary policy to regulate the excess cash flow in the economy as a whole.　　After the central bank has been in the open market for 10 consecutive weeks to achieve net return, the cumulative net withdrawal of funds has reached 1.1 trillion yuan.　　Yixianrong frankly raised the deposit reserve ratio on the property market, although not as direct, but the bank raised the reserve ratio, loan size will shrink, will also affect to a certain extent developers loans.　　The tightening of monetary policy is expected Mao Rui Mao Rui pointed out that the increase in deposit reserve ratio is somewhat unexpected, because after just raising interest rates and announced the increase in reserve requirements, monetary policy changes in the frequency of the high market some measures to prevent. But it's understandable. Mao Rui Frankly, Zhang Jianhua, director of the Central bank's research bureau, said in a public statement earlier this month that China should gradually return to normal and prudent monetary policy from loose monetary policy, and that the market had been anticipating a tightening of monetary policy. Mao Rui that the central bank's increase in reserve requirements is focused on controlling inflationary pressures to ease the liquidity pressures of quantitative easing in developed countries.