The 5-year LPR was cut by 25 basis points to 395%, from the LPR reform in 2019 to the present, the LPR has changed from 48% to 4It took 5 years for 2% to adjust the average annual adjustment of 12bp, and this time it was adjusted by 25bp, which is definitely beyond expectations.
In fact, from the increase of 500 billion PSL in the fourth quarter of last year, as well as a series of operations such as the 1 trillion national bonds and the subsequent RRR cut, we can also feel that the central mother wants to stabilize real estate, and at the same time, she also wants to stabilize consumption.
In the past two years, the most discussed recession of residents' balance sheets has been the core problem of real estate. From the data, it can be seen that after 2021, the overall sales of real estate are declining, and the decline is very large. 
At this rate, it should continue to decline, as there is currently no better policy tool to address growth.
The troika of investment, exports, and consumption, which drives the economy, is very difficult to stimulate in the short term, because it is necessary to solve the problem of purchasing power and confidence in the household sector. After 2013, why the logic of consumption upgrading can be so smooth, it is because the real estate inventory has made another wave of price increases**, and the assets held by everyone are appreciating, which is a process of slowly becoming rich.
The investment side depends on the budget of the department, and the budget depends on the tax situation. Last year's announced fiscal revenues and expenditures, general public budget revenues 2168 trillion, a year-on-year increase of 64%, of which 693 trillion, a year-on-year increase of 423%, mainly due to the fact that there were more tax refunds last year, the impact of a low base, and other taxes other than value-added tax were basically declining, such as consumption tax 161 trillion, down 35%, corporate income tax 410 trillion, land value-added tax 529.4 billion, down 166%, and the largest piece is the income from the transfer of land use rights57 trillion, down 132%。
Last year, I surveyed some listed companies with a high proportion of G-end business, and the unanimous feedback was that the business was very difficult, and the G-side had no money and budget. Therefore, this year's investment in this area depends entirely on how much strength the central mother can give.
Japan also experienced a period of policy ineffectiveness after the bursting of the housing bubble in 1990, when the central bank continued to lower interest rates to zero, but the economy still fell into deflation. Because the problem of debt in the residential sector really takes time.
At the macro level, it is pessimistic to talk too much, and when it comes back to the market, it is now clear that one road is speculating on the theme, and the other way is holding high-dividend white horse stocks, such as Yili, Gree, Midea and Shuanghui. In an uncertain environment, these companies with solid performance and consistently high dividends are already attracting more capital attention.