Li Xunlei: There is also room to cut interest rates after a targeted downgrade, see if it may fall in 3 months

LiXunlei:Thereisalsoroomtocutinterestratesafteratargeteddowngrade,seeifitmayfallin3months
FollowingthecomprehensivedowngradeinJanuaryofthisyear,itwasannouncedonMarch13oftheyearthatitdecidedtoimplementatargetedreductionininclusivefinanceonMarch16,2020,whichwouldbereducedto0forbanksthatmeettheassessmentcriteria.5to1advantage.Inaddition,thereisanadditionalexceptiontothetargetedreductionofeligiblestockbankstosupporttheissuanceofloansinthefinancialsector.Atotalof550billionyuanoflong-termfundshavebeenreleasedthroughtheabovetargetedreduction.Interestratecutsarealsoontheway.LiXunlei,chiefeconomistofZhongtaiSecurities,toldSaunaandYeewangthatthereisroomforinterestratecutsbymonetarypolicytoolssuchasMLF(medium-termlendingfacility),buttheyneedtobeimplementedinstages.Ifthe3-monthdatafalls,thentheratecutmaybemoresecureatthattimesome.PanHelin,ExecutiveDeanoftheDigitalEconomicResearchInstituteofZhongnanUniversityofEconomicsandLaw,alsobelievesthatfromtheperspectiveofinternationalfinancialmarkets,domesticmacroeconomics,andindustrialchains,thereshouldberoomforcomprehensiveRRRcutsandinterestratecutsinthefuture.ThechiefanalystofCITICSecurities’fixedincomeclearlyexpectedtheratecuttobeearlier.HebelievesthatthefinancialdatainFebruarywaslowerthanexpected,andtheshort-termdomesticeconomyhasshownweakdemandandtightcreditcharacteristics.Withthespreadoftheoverseasepidemic,theglobalinterestratecutshavebeenopened.ConsideringtheneedtohedgetheepidemicandthespacebetweenChinaandtheUnitedStates,itismoreappropriate.Thetimehascomeforaratecut.TheMLFinterestratecutmaybeatsunsetonMarch16.Itisexpectedtolowerthe5-10basispointstoguidethe20-dayLPR(loanmarketquotedinterestrate)tocontinuetofall,releasingmore”flexibleandmoderate”monetarypolicysignals.InFebruary,itisexpectedthatthereverserepurchaseandMLFrateshavebeenloweredsuccessively,drivingLPRquotationsdowninFebruary.Sauna,YeWangChengWeimiaoEditingLiWeijiaProofreadingLiXiangling