The "Double Down" Of The Central Bank In The "Frost Descending" Season

Judging from the SFC's handling of illegal activities, management has no longer unilaterally pursued the artificial bull market, but rather hopes to create a healthy market for development.

Therefore, neither the management nor the senior level will "double down" in order to stimulate the stock market.

Moreover, as early as a month ago, general secretary Xi Jinping made it clear that the stock market entered the stage of self repair and self adjustment.

Therefore, the central bank "double down" is not for the stock market.

The current stock market needs not a mad cow but a healthy development trend.

In October 24th, "frost descends" in season.

On this day, the central bank also "double down": first, reduce the benchmark interest rate of the one-year deposit and loan of financial institutions by 0.25%, and the two is to reduce the RMB deposit reserve ratio of financial institutions by 0.5 percentage points.

This is the decision made by the central bank in October 23rd.

Although the central bank's "double down" is somewhat unexpected, it is also reasonable.

Because in the three quarter of October 19th, the GDP dropped 7%, which is the first time that GDP has fallen 7% since the second quarter of 2009.

Although the spokesman for the National Bureau of Statistics said that the GDP grew by 6.9% in the three quarter, or around 7%.

But the left point is different from the right one.

6.9% is not the same as 7.1%.

GDP growth rate dropped to 6.9%, showing the current economic situation is grim, also shows that this year's national economic security 7% goals are arduous.

In this economic situation, it is reasonable for the central bank to "double down".

In fact, earlier in the day when the central bank made a decision to "double down", Premier Li Keqiang of the State Council at the Central Party school today.

As well as the key work report, it is also clear that we should make rational use of monetary policy measures such as lowering the right rate, lowering the target rate and so on, so as to maintain the smooth operation of the economy.

Do not expect the central bank in November last year.

After that, the bull market will resume again in the market.

After all, the stock market is not the same as it was a year ago.

The current stock market trend is similar to that of a year ago, and there is an upward trend.

This is why some investors have compared the impact of the "double drop" with the "interest rate cut" a year ago on the stock market.

But in fact, the market environment facing the stock market is quite different from that of a year ago.

First, the location of the stock index a year ago is about 1000 points lower than that of the current stock index, and the risk is much smaller.

Two, a year ago, many of the stock market funds were leveraged, and the stock market is still in the process of deleveraging.

The three is that the market faced by the stock market a year ago is a market that has been adjusting for 6 years since 2008. Many high hang ups have been digested by 6 years' adjustment. At present, the stock market needs to directly face the hang up plate left by the previous stock market crash.

What is particularly important is that after the lessons learned from the stock market's sharp rise and fall, management has obviously strengthened the supervision of illegal activities in the stock market, and some market manipulation behaviors that manipulate stock prices have been severely supervised by the management.

If the central bank decides to make a "double drop" decision,

Also announced the punishment of 12 cases of rigging market cases, only fines reached 2 billion yuan, and the institutions and individuals that manipulated the stock price of A were fined nearly 1 billion 300 million yuan.

This is unprecedented in the history of A shares.