Deposit reserve ratio adjusted to new high impact engineering machinery sales

Following the central bank’s six consecutive increases in deposit reserve ratio last year. On January 14, the People's Bank of China announced that it will increase the RMB deposit reserve ratio of financial institutions by 0.5% from January 20 this year. This is the first monetary policy move in 2011. After this increase, the deposit reserve ratio of China's large financial institutions will reach a historical high of 19%, and the reserve ratio of small and medium-sized financial institutions will also be as high as 15.5%. It is roughly estimated that after this increase, the central bank can freeze the liquidity of the banking system by about 350 billion yuan at a time. Industry experts said that this time the deposit reserve ratio is raised to shrink liquidity. As the deposit reserve ratio has been raised continuously and interest rates have been raised last year, this increase may have greater market impact than the previous few due to the additive effect.

We know that the main market demand for construction machinery industry is the country's large-scale infrastructure projects, such as railways, highways, nuclear power, real estate and other industries, and these project constructions have great dependence on state credit. The editor of China Construction Machinery Business Network believes that the increase in the deposit reserve ratio will inevitably reduce the credit quota, affect the construction progress of some major engineering projects, and indirectly restrict the sales of construction machinery products. Therefore, construction machinery companies should make early preparations, formulate corresponding production and marketing policies, ensure that production of enterprises proceed according to plan, and minimize this impact to the maximum extent possible.