The automobile industry welcomes a major boost: The reduction of reserve requirements for automobile finance releases billions of funds.

According to the arrangement of the People's Bank of China, on the 15th, the first reserve requirement ratio cut of the year took effect. Chen Hongbin, a special research fellow at the China Finance Research Center of Tsinghua University School of Economics and Management, said that the total funding scale of China's car rental companies exceeded 1 trillion yuan last year. If the deposit reserve ratio is reduced from the current 5% to 0%, the total amount of funds released would exceed 500 billion yuan, and the release effect of this policy would be around 1 trillion yuan. If these funds are concentrated in the automotive industry, the stimulus to the industry would be significant. At the same time, the release of funds in the trillions level will also have a good stimulating effect on China's macroeconomy.