The People's Bank of China decided to reduce the RMB deposit reserve ratio of financial institutions by 0.5% starting from December 5. The previous cut in the reserve ratio of the Central Bank of the United States dates back to December 2008, and for the first time in three years, it lowered the deposit reserve ratio. This move was seen as a turn of the monetary tightening policy since 2010. Under the macro-control, the most intuitive effect on the auto market is the improvement of the financing environment for auto makers, especially for 63% of dealers who need financing through bank loans.
Dealer financing environment improved Guoxin Securities fixed income analyst Li Huaiding said, according to estimates, the adjustment will release funds of about 370 billion yuan. Some commercial bankers even believe that the move will release the banking system with up to 400 billion yuan in funds. Standard Chartered Bank analyst Li Wei said that the bank predicts that the reserve requirement ratio for the first half of 2012 will fall by another 2 percentage points.
This means that the scale of bank lending expansion, companies can get more loans from the bank, especially for the capital-intensive auto industry is more conducive to ease the financial pressure.
On December 1st, Zhou Yonghan, a partner of Deloitte Touche Tohmatsu Certified Public Accountants, provided a set of analysis data at the 2011 annual conference of China's automobile circulation industry: "The overwhelming majority of dealers are unable to maintain sufficient liquidity with their own funds, and the statistical results show that There are less than 30% of funds and 63% of dealers use bank loans to finance."
Adequate working capital and healthy cash flow are the key to the development of auto manufacturers. Under the macro environment of macro-control and the monetary tightening of banks, in the past two years, automobile manufacturers such as GAC Group, Zhongsheng Holdings, and Damai Automobile and other automobile dealers Into the capital market one after another, listing financing, want to get rid of the capital constraints.
In November 2011 alone, there was a series of corporate debts such as short-term, medium-term financing bills, etc., which were selected by Guangwu Automobile Trade, Guangzhou Automobile Group, and Brilliance Automotive. In order to meet the urgent needs of funds, since January 2010, the central bank raised the deposit reserve ratio 12 times in a row. The reduction in money supply, the tightening of bank credit, and the difficulty in obtaining bank loans.
For ordinary consumers, monetary policy is fine-tuned, and the meaning of the signal is more substantial than it really is. Banks will implement a slightly looser policy on personal car loans. Unlike mortgages, except for banks, auto companies’ own financial companies have launched financial plans such as “zero interest rate†and “5050â€, and consumer loans are used to buy cars. Relatively simple.
Auto market growth in 2012 was held on December 1st at the annual conference of China's automobile circulation industry in 2011. Liu Ming, the principal researcher of the Economic Information Center of the National Information Center, said that research shows that the generalized money supply M 2 minus the price increase minus the growth of the auto market If less than 3, it means that the auto market is growing at a low rate; if it is higher than 4, it means that the auto market has a substantial increase.
According to Liu Ming, due to macroeconomic measures, M 2 has declined. In the past, M 2 has been about 30%. At the beginning of the year, it was 17%. Now the money supply is less than 13%. Coupled with rising prices, CPI's monthly rise is above 4%, and inflationary pressure is huge. The decline in economic growth and the reduction in money supply have affected the overall auto market.
Regarding the trend of the auto market next year, the view of the National Information Center's researchers believes that it still depends on three factors: macroeconomics, industry policies, and the consumer environment. Among them, Liu Ming mentioned that stabilizing macroeconomic policies, the central government proposed "wide fiscal, stable currency", is also good news for the auto market. Although the expected growth rate of GDP next year will be slightly lower than this year, infrastructure investment will rebound and the commercial vehicle market will have a rapid growth. The National Information Center’s judgment on the growth rate of the auto market in 2012 is “resumed normal operation and is close to long-term potential growth. The overall auto market will maintain an increase of around 8-10%, of which the growth rate of passenger vehicles will be 10-15%.†At the conclusion of the 9th Guangzhou Auto Show at the end of the week, the top analysts at the National Information Center forecast slightly more optimistic than the growth rate of top executives who did not exceed 10%.
Dealer financing environment improved Guoxin Securities fixed income analyst Li Huaiding said, according to estimates, the adjustment will release funds of about 370 billion yuan. Some commercial bankers even believe that the move will release the banking system with up to 400 billion yuan in funds. Standard Chartered Bank analyst Li Wei said that the bank predicts that the reserve requirement ratio for the first half of 2012 will fall by another 2 percentage points.
This means that the scale of bank lending expansion, companies can get more loans from the bank, especially for the capital-intensive auto industry is more conducive to ease the financial pressure.
On December 1st, Zhou Yonghan, a partner of Deloitte Touche Tohmatsu Certified Public Accountants, provided a set of analysis data at the 2011 annual conference of China's automobile circulation industry: "The overwhelming majority of dealers are unable to maintain sufficient liquidity with their own funds, and the statistical results show that There are less than 30% of funds and 63% of dealers use bank loans to finance."
Adequate working capital and healthy cash flow are the key to the development of auto manufacturers. Under the macro environment of macro-control and the monetary tightening of banks, in the past two years, automobile manufacturers such as GAC Group, Zhongsheng Holdings, and Damai Automobile and other automobile dealers Into the capital market one after another, listing financing, want to get rid of the capital constraints.
In November 2011 alone, there was a series of corporate debts such as short-term, medium-term financing bills, etc., which were selected by Guangwu Automobile Trade, Guangzhou Automobile Group, and Brilliance Automotive. In order to meet the urgent needs of funds, since January 2010, the central bank raised the deposit reserve ratio 12 times in a row. The reduction in money supply, the tightening of bank credit, and the difficulty in obtaining bank loans.
For ordinary consumers, monetary policy is fine-tuned, and the meaning of the signal is more substantial than it really is. Banks will implement a slightly looser policy on personal car loans. Unlike mortgages, except for banks, auto companies’ own financial companies have launched financial plans such as “zero interest rate†and “5050â€, and consumer loans are used to buy cars. Relatively simple.
Auto market growth in 2012 was held on December 1st at the annual conference of China's automobile circulation industry in 2011. Liu Ming, the principal researcher of the Economic Information Center of the National Information Center, said that research shows that the generalized money supply M 2 minus the price increase minus the growth of the auto market If less than 3, it means that the auto market is growing at a low rate; if it is higher than 4, it means that the auto market has a substantial increase.
According to Liu Ming, due to macroeconomic measures, M 2 has declined. In the past, M 2 has been about 30%. At the beginning of the year, it was 17%. Now the money supply is less than 13%. Coupled with rising prices, CPI's monthly rise is above 4%, and inflationary pressure is huge. The decline in economic growth and the reduction in money supply have affected the overall auto market.
Regarding the trend of the auto market next year, the view of the National Information Center's researchers believes that it still depends on three factors: macroeconomics, industry policies, and the consumer environment. Among them, Liu Ming mentioned that stabilizing macroeconomic policies, the central government proposed "wide fiscal, stable currency", is also good news for the auto market. Although the expected growth rate of GDP next year will be slightly lower than this year, infrastructure investment will rebound and the commercial vehicle market will have a rapid growth. The National Information Center’s judgment on the growth rate of the auto market in 2012 is “resumed normal operation and is close to long-term potential growth. The overall auto market will maintain an increase of around 8-10%, of which the growth rate of passenger vehicles will be 10-15%.†At the conclusion of the 9th Guangzhou Auto Show at the end of the week, the top analysts at the National Information Center forecast slightly more optimistic than the growth rate of top executives who did not exceed 10%.
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