Pan Gongsheng, governor of the People's Bank of China, announced at a press conference held by the State Council Information Office on the 7th that the reserve requirement ratio would be lowered by 0.5 percentage points, providing the market with long-term liquidity of approximately RMB 1 trillion, and lowering the policy interest rate by 0.1 percentage points.

The Information Office of the State Council of mainland China held a press conference on the 7th, where People's Bank of China Governor Pan Gongsheng, Director of the State Financial Supervision and Administration of mainland China Li Yunze, and Chairman of the China Securities Regulatory Commission Wu Qing introduced the "package of financial policies to support stabilizing the market and expectations."

The last reserve requirement ratio cut was on September 24, 2024, when Pan Gongsheng announced that the deposit reserve ratio would be lowered by 0.5 percentage points to provide approximately RMB 1 trillion in long-term liquidity to the financial market.

Secondly, in terms of interest rates, the central bank's policy interest rate will be lowered, and the 7-day reverse repurchase operation rate will be reduced by 0.2 percentage points. It will drop to 1.5% in the future, guiding the loan market benchmark rate and deposit rate to decline simultaneously and keeping the net interest margin of commercial banks stable.