CITIC Securities Yang Fan Monetary policy is expected to continue to cut the reserve requirement rat

Mondo Finance Updated on 2024-03-05

On March 5, the second session of the 14th National People's Congress opened, and the prime minister made a work report. Yang Fan, chief analyst of macro and policy at CITIC, believes that the GDP target for 2024 is set at about 5%, which is in line with expectations; This year, monetary policy is expected to continue to usher in RRR and interest rate cuts.

The 2024 ** work report will further enhance the efficiency of macro policies and enhance the consistency of policy orientation. Yang Fan pointed out that the GDP target for 2024 is set at about 5%, which is in line with expectations. Taking into account the 1 trillion yuan special government bond and the remainder of the fiscal deficit raised in October last year, the deficit rate this year is only 3 percent, but the broad fiscal policy is not conservative. In 2024, monetary policy is expected to continue to usher in RRR and interest rate cuts.

At the same time, it is expected that the reform of state-owned enterprises, finance, finance and taxation, and land is expected to accelerate, of which fiscal and taxation reform may focus on improving the allocation of local taxes, increasing the proportion of direct taxes, and refining the level of budget management. In addition, on the basis of short-term risk prevention, the report puts forward more directions for industry transformation, including the construction of the "three major projects" of real estate and the transformation of local urban investment, highlighting the "treatment of both symptoms and root causes" and "establishing first and then breaking".

From the perspective of industry, "the frequency of the words 'industry' and 'innovation' in the 2024 ** work report is 41 times, which is significantly higher than the ** work report in 2023." It is expected that in the future, it will vigorously develop emerging industries including intelligent networked new energy vehicles, new hydrogen energy, new materials, innovative drugs, low-altitude economy, etc., in addition to computing power base and data base may also be the focus of investment this year. Yang Fan pointed out.

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