China’s Reserve Cut Boosts Liquidity, Leading to Surge in Stocks of 601 Generation with “Blooming” Report Card

In recent period, the US stock market, Japanese stock market, and Taiwan stock market have frequently hit new highs. However, the mainland stock market has not seen the expected market reopening trend. Instead, the real estate crisis has been ongoing. Evergrande Group, the largest real estate developer in China, encountered problems after filing for bankruptcy in the United States at the end of last year. Foreign capital has been fleeing.

On January 24, the governor of the People’s Bank of China, Pan Gongsheng, announced a reduction of the reserve requirement ratio for deposits by 0.5% starting from February 5. This move aims to provide long-term liquidity to the market and has led to a significant surge in stocks listed on the 601 sub-index.

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