Last Friday, when Premier Li Keqiang met with International Monetary Fund (IMF) Managing Director Kristalina Georgieva via video, she mentioned that China’s monetary policy would “cut RRR at an appropriate time.”
Therefore, many people feel that there is a taste of a “fire-line RRR cut” for the announcement of the RRR cut immediately after the market today. However, in the face of the last month of 2021, the uncertainty of the global market has suddenly increased, repeated epidemics have been superimposed and geopolitical risks are high. This time the RRR cut seems far-reaching. So what is the long-term logic of this wave of RRR cuts? What impact will it have on the market and our investment in 2022? Today we will come to the plate.