Financial Leasing Liquidity Loosening AB side: Economic Transformation and Upgrading Gaining Momentum, Industry Polarization Countdown

Pan Gongsheng, the Governor of the People's Bank of China, recently announced at a press conference held by the State Council Information Office that the reserve requirement ratio for car finance companies and financial leasing companies will be temporarily reduced from the current 5% to 0%. Industry experts believe that the targeted reserve ratio cut to 0% for car finance companies and financial leasing companies by the central bank has a clear policy direction. "In recent years, with the implementation of a series of regulatory policies, financial leasing companies have accelerated their return to their original purpose, and the industry's special value has gradually become more prominent," said a person in charge of the financial market department of a bank-owned leasing company to reporters. Compared to other financial formats, financial leasing has multiple functions such as integrating goods, funding, and intelligence, and has closer connections with real industries. The reduction of the reserve requirement ratio to 0% will help improve its liquidity and reduce debt costs. However, industry experts believe that in the long run, targeted reserve requirement policy may promote industry consolidation.