Hang Seng Index Rises 600 Points in Just Half a Day

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　　Several departments in mainland China held a joint press conference to introduce a series of policies aimed at stimulating the economy and supporting the stock market. After the announcements regarding the reserve requirement ratio and mortgage interest rates, both Hong Kong and mainland stock markets performed well. The Hang Seng Index rose by 598 points, an increase of 3.28%, closing at 18845 points, with a trading volume of 117.9 billion yuan; the Shanghai Composite Index also rose by 2.38%, closing at 2814 points.

　　People's Bank of China Governor Pan Gongsheng, National Financial Regulatory Administration Director Li Yunzhe, and China Securities Regulatory Commission Chairman Wu Qing announced several positive policies at the press conference. Pan stated that the reserve requirement ratio and policy interest rates would be lowered to bring down market benchmark rates; existing mortgage interest rates would also be reduced, and the minimum down payment ratio would be standardized. Lastly, new policy tools would be introduced to support the stock market.

　　He mentioned that the reserve requirement ratio would be cut by 0.5 percentage points in the near future, injecting 1 trillion yuan of long-term liquidity into the market. Additionally, depending on market liquidity, there could be further reductions of 0.25 to 0.5 percentage points this year, meaning the total reduction might reach 1 percentage point.

　　Moreover, authorities will guide commercial banks to align existing mortgage interest rates with those of new loans, with an expected decrease of around 0.5 percentage points. They will also standardize the minimum down payment ratio for first and second homes, lowering the minimum for second homes from 25% to 15%.

　　To promote the development of the stock market, relevant departments plan to introduce swap arrangements between securities, funds, and insurance companies. This will help qualifying companies obtain liquidity from the central bank through asset pledges, enhancing their financing and stock acquisition capabilities. Additionally, special relending facilities will be established to guide banks in providing loans to listed companies and major shareholders to support stock repurchases and increases.