SMM

CITIC Securities Research Report pointed out that the credit data in July was significantly weaker than expected. The reason may lie in the overdraft of reserve projects and insufficient new demand. Residents’ willingness to increase leverage is low, housing purchases speed slow down and mortgage loans are repaid in advance. According to the data, we believe that the probability of a near-term RRR (required reserve ratios) cut is relatively high, and we do not rule out the possibility of further reducing the policy interest rate. All in all, the current fundamentals are favorable to the bond market, and liquidity will be loose under the demand for steady growth. Since the impact of the policy to steady growth on the market is strengthening, we expect that the short-term bond market may continue to fluctuate within a narrow range.