CICC: a huge amount of capital or from the stock market back to financial products and savings accounts.

A recent China International Capital Co research report pointed out that with the cooling of China's stock market turbulence, capital will return to liquid fixed income market, but if there is no more monetary policy to support it, there are still some factors that may prevent it. Bond yields The slide.

CICC reports that huge amounts of capital in the Chinese market will flow back from the stock market to financial products and savings accounts, of which a large amount of capital may be used to purchase fixed income products.

The report further pointed out that, due to the huge demand for financing caused by the rescue measures launched by China, which pushed up short-term interest rates and the large number of short-term products invested by the banks, the steepest part of the yield curve is located at the short end.

The report also pointed out that China's large bank debt is still unstable, and the performance evaluation of these banks is under greater pressure, which is a hindrance to some extent. lending rate The downlink.

At the end of the report, it is pointed out that with the adjustment of China's economic structure and the difficulties caused by deleveraging, it is necessary to ease monetary policy. The 7 day of the Chinese market on the previous trading day Repo rate It rose 5 basis points to 2.4939%, while the 10 year treasury bond yield rose 1 basis points to 3.530%.