PBOC RRR Cut Will Help the Market, Says Kingston Securities' Wong

The video discusses the anticipated changes in China's monetary policy, focusing on the State Council's decision to cut the reserve requirement ratio, releasing liquidity into the market. This move aims to support smaller and micro companies amid the US-China trade war. However, challenges persist for SMEs in securing loans from big banks. The video also analyzes the Shanghai Composite's performance, noting a 12% decline and predicting limited volatility for the rest of the year.

What was the main reason for the PBOC's reserve requirement ratio cut?

• To reduce government debt

• To strengthen the currency

• To decrease inflation

• To increase liquidity in the market

Why do small and medium enterprises (SMEs) struggle to get loans despite monetary policy changes?

• They are not interested in loans

• Big banks prefer lending to larger enterprises

• They have too much liquidity

• They have high credit scores

What is one potential benefit of targeted reserve requirement ratio cuts?

• Increased lending to SMEs

• Higher interest rates

• Reduced inflation

• Stronger currency

What is the current performance trend of the Shanghai Composite?

• It is down by 12%

• It is stable with no change

• It is experiencing a significant rise

• It is up by 12%

What could potentially reverse the current market trend according to the discussion?

• More stringent regulations

• Higher interest rates

• A resolution to the trade tensions

• Increased government spending