Bought More, Prices Soared! Regret Not Buying More!

On the morning of the 23rd, it was known that there would be a press conference today.

However, the market didn't react much; everyone has seen too many press conferences, and no one expected such a strong impact beforehand.

1.

The reserve requirement ratio was reduced by 50bps, providing long-term liquidity of 1 trillion yuan.

Depending on the market liquidity conditions, there might be a further reduction of 25-50bps in the future.

2.

The policy interest rate was lowered, with the 7-day reverse repo operation rate reduced by 20bps, from 1.7% to 1.5%, guiding the LPR and deposit rates to decrease synchronously while maintaining a stable net interest margin.

3.

The existing mortgage interest rates were reduced to the level of new issuance, with an average decrease of 50bps.

4.

The down payment ratio for the first and second homes was unified, with the second home down payment ratio reduced from 25% to 15%.

5.

The 300 billion housing reloan released in May, the support ratio was increased from 60% to 100%, enhancing market-oriented incentives.

6.

The business property loans and the 16 financial policies were extended to the end of 2026.

7.

A new securities fund insurance company swap convenience tool was created, allowing institutions to pledge central bank assets to obtain liquidity, improving the institutions' ability to obtain funds and increase their stock holdings.

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8.

A special reloan for stock buyback and increase was created, guiding banks to lend to listed companies to support stock buybacks and increases.

The seventh and eighth points are unprecedented.

Let's elaborate on the eighth point: At today's press conference, Governor Pan said that a special reloan for stock buyback and increase was created, guiding commercial banks to provide loans to listed companies and major shareholders for buying back and increasing their stocks.

The central bank will issue reloans to commercial banks at a rate of 1.75%, and when commercial banks lend to customers, the rate will be increased by 0.5%, which is 2.25%.

The first phase is 300 billion, and if this work is done well, it can be increased later.

Listed companies or major shareholders can borrow from banks at an interest rate of 2.25% to buy back stocks, and banks don't have to worry about the source of funds.

This part of the money is ultimately provided by the central bank at a low interest rate of 1.75%.

Banks can earn a net interest margin of 0.5% without spending money.

The first phase is only 300 billion yuan, and it is likely to be prioritized for large enterprises, such as China Merchants Bank, Kweichow Moutai, and China Shenhua.

These large enterprises with high dividend rates can directly cover the loan interest rate with dividends.

In the weekly report "Making money for three consecutive days, a cumulative loss of 1.37 million (Weekly Report 262)", Borg specifically mentioned the gritted teeth to increase the position: Borg increased his position by 110,000 yuan (ETF small real plate + investment advisory combination) when the Shanghai Composite was close to 2700: 30,000 yuan to buy military ETF (currently losing), Borg's love for the military is a bit persistent.

Under the background of great power games, military enterprises have a lot to do, and recently, high-end weapons have also begun to be exported on a large scale; in addition, the military is also the biggest beneficiary of the low-altitude economy; today's military increase is relatively small: 30,000 yuan to buy Hong Kong securities (currently profitable), Borg doesn't like securities, the merger of Guotai Junan and Haitong is considered to be the beginning of the merger of large securities companies.

The business model of securities companies is relatively simple, and mergers + layoffs can bring profits.

In addition, the price of securities H shares is lower, which should be considered as a bottom layout for the industry.

Since the bottom, it has earned more than 10%: 30,000 yuan to buy gold stock ETF (currently profitable), the price of gold has not fallen, but the gold stock has fallen by 30%.

At that time, I thought that if gold had a wave of rising, the gold stock would probably rise again.

Unexpectedly, recently, gold has broken through 2600 US dollars, and gold stocks have also started to rise.

Since the bottom, it has also risen by more than 10%: 20,000 yuan to buy dividend hamburgers (currently profitable), dividends have recently been adjusted a lot, and since the current 10-year government bond interest rate is only 2%, Borg also took the opportunity to buy dividend hamburgers as a long-term bond.

Since the bottom, it has earned nearly 8%: I really didn't expect this press conference to be so powerful.

Borg has increased his position before, and now he won't increase his position anymore!

A big client called and asked, "Why did bonds fall sharply even though the reserve requirement ratio was reduced?"

Borg thought this way: Before, everyone thought that bank loans couldn't be issued, and they had to buy government bonds.

As a result, government bonds have continued to rise in the past year, and the interest rate on 10-year government bonds is about to fall below 2%.

Now it is clear that the existing mortgage loans have been reduced, and the down payment ratio has been reduced at the same time.

Everyone is not in a hurry to repay the loan in advance, and it is possible that the stock of mortgage loans will increase.

In addition, the governor also said that the scale of real estate development loans has started to stop falling and stabilize.

For banks, there are more places to issue loans in the future, which will reduce the investment in bonds; if financial institutions increase their investment in stocks, they will also reduce their investment in bonds.

The key is that many investors who make money on long-term bonds have also started to take profits, and as a result, the bond market has fallen, especially the long-term bond market.

It is estimated that long-term bonds will only be adjusted for one or two months, and short-term bonds will continue to rise slowly.

Anyway, Borg doesn't have long-term bonds and will continue to hold short-term bonds to earn interest.

All have risen, Borg will not continue to increase the position of stocks, and the liquid funds will continue to buy short-term bonds, and the National Day holiday can earn interest for more than ten days.