Jinwu Financial News | Most bank stocks rose; Bank of Tianjin (01578) rose 4.17%, Bank of Bohai (09668) rose 3.81%, Bank of Harbin (06138) rose 3.91%, Postbank (01658) rose 3.54%, and China Merchants Bank (03968) rose 2.89%.
According to a report published by J.P. Morgan Chase, the People's Bank of China announced a 50 basis point reduction in the reserve ratio (RRR), which will take effect on February 5, and is expected to release about 1 trillion yuan of liquidity to the financial system. The bank said that the downgrade was earlier than expected, and the decline was larger than expected. This had a positive impact on the Bank of China because the People's Bank of China only lowered RRR, but did not reduce interest rates. The bank believes that the latest measures will help the Bank of China's net interest spread, and at the same time support the Bank of China's investment in government bonds, thereby slightly mitigating growth and asset quality risks. At the same time, the policy also sent a positive signal in favor of growth. The bank said that at the stock level, since the additional liquidity brought about by the downgrade should be absorbed through issuing treasury bonds, it is expected that interest rates between banks will not drop drastically, so it believes that the Postbank will benefit the most.