Huang Zhiling, chief economist of China Construction Bank: the central banks signal is firm and powerful, and the financial market welcomes reassurance

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 Huang Zhiling, chief economist of China Construction Bank: the central banks signal is firm and powerful, and the financial market welcomes reassurance


After the central bank carried out the above operations, the total amount of liquidity was more than 900 billion yuan over the same period last year. According to Huang Zhiling, the liquidity after the festival will be kept at a more sufficient level than in the past years, which reflects the determination of the central bank to provide sufficient liquidity and flexibility in operation, and provides a reassuring pill for financial institutions to support epidemic prevention and control, serve the real economy and maintain the stability of the financial market, which is conducive to stabilizing the expectations of financial institutions and boosting the confidence of the financial market.

Looking back on history, the liquidity risk of financial market caused by major emergencies often comes from the expectation of market subjects for the uncertainty of central banks monetary policy. If the central bank issues clear policy intention in time, market subjects will make their own market judgment, adjust their own behavior, and avoid the market liquidity risk caused by synchronous operation. According to Huang Zhiling, in order to cope with the impact of the new coronavirus infection pneumonia epidemic on the financial market, the peoples Bank of China issued an announcement in advance to convey a firm and powerful policy signal to the market, which will help to eliminate the markets speculation on the uncertainty of monetary policy and its excessive preparation, help the market make rational judgments respectively, and avoid the liquidity risk caused by group panic.

Huang stressed that the modern central bank not only plays a role as a bank, but also bears the mission of stabilizing the financial market. We believe that the peoples Bank of China will certainly live up to its mission and be able to manage the liquidity risk in the financial market.