The central bank stated that starting from April 25, 2018, the major banks, joint-stock commercial banks, city commercial banks, and non-county rural commercial banks, foreign bank RMB deposit reserve ratio were reduced by 1 percentage point; on the same day, the banks mentioned above will each follow In order to repay the medium-term borrowing facilities (MLF) borrowed by the Central Bank, the funds are released using the funds released in the first order.
Interpretation: This time, the RRR cut releases a total of 1.3 trillion yuan in liquidity, of which 900 billion yuan will be used by central banks to replace MLFs that have not yet expired. The actual incremental funds to be released are about 400 billion yuan, and they are mainly invested in urban firms and farmers. Commercial Banks. The Central Bank explicitly requested that incremental funds be used mainly for small and micro loans, appropriately reduce the cost of micro-finance, and include MPA assessment. At present, China's small and micro enterprises still face difficulties in financing and expensive financing. By reducing deposits The gold rate can increase the long-term funding, and the bank’s capital cost will be reduced. The replacement of the MLF will reduce the cost of commercial bank interest payment, which will help reduce the financing cost of the company and help the small and micro enterprises to solve financing problems. Funds can be used to support small and micro enterprises.
Polypropylene downstream industries are mainly involved in woven and non-woven fabrics, commodity injection molding, BOPP film, small household appliances, etc. Among them, weaving is the largest downstream industry of polypropylene, and the production enterprises are mainly small and medium scale. Small household appliances mainly consume polypropylene. Injecting, co-injection molding and other raw materials, the trade wars raging up some time ago, making polypropylene downstream industries such as electrical appliances have some export blocking. With the changes in the international external environment, some of our industry's export outlook is not optimistic, and we are in the second half The economic growth still needs to increase support for SMEs. At this time, the RRR cut is also a measure to cope with changes in the international situation. It can effectively support the real economy, and SMEs in the polypropylene downstream industry will also benefit from this reduction. .
On the whole, the central bank lowered its standards, which outweighed the disadvantages of the polypropylene industry. In the short-term, the futures 1809 fluctuated widely, and the market transaction price remained high, but the low level rose slightly from yesterday's level. 4. The demand for polypropylene downstream industry was still in May, and it was purchased on-demand in the market. The overall fundamentals improved slightly.