the stock market is recovering and the central bank is starting a new model

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among them, the central bank introduced a mechanism of "special re-loan for stock repurchase and increase in holdings". this model will directly provide preferential interest rate loans to listed companies for repurchase and increase in holdings of stocks, and guide financial institutions to provide financial support to qualified enterprises on the premise of independent decision-making and self-risk.

this "lending first, borrowing later" model makes the market more flexible and facilitates the central bank to accurately support relevant fields. the initial quota is 300 billion yuan. this tool is applicable to state-owned, private and mixed-ownership listed companies, without any ownership restrictions.

what positive effects will the success of this mechanism bring? first, it will provide long-term funds for the stock market and support the coordination of the investment and financing functions of the capital market. at the same time, it can help maintain the stability of the capital market and further promote the overall healthy development of the stock market.

in addition, the central bank has also taken new measures to support the real estate market, such as the "guaranteed delivery loan support plan", "special re-loan for real estate companies to relieve difficulties", and "re-loan for affordable housing". these policy tools have been created one after another and injected new impetus into related fields, helping to solve the problem of stagnant real estate market.

specifically, the "affordable housing re-loan" will use part of local government special bonds for land reserves, and study allowing policy banks and commercial banks to lend to support qualified enterprises in the market-based acquisition of real estate companies' existing land, thereby revitalizing existing land and alleviating the financial pressure on real estate companies.

industry insiders generally believe that the central bank's move will mark the beginning of a new era. it represents a new direction for china's economic development, will inject new vitality into the market, and promote sustained and healthy economic growth.