Recently, the US stock market, Japanese stock market, and Taiwanese stock market have been hitting new highs frequently. However, the mainland Chinese stock market has not seen the expected trend of reopening, but instead has been facing a continuous real estate crisis. Evergrande Group, the largest real estate developer in China, encountered problems after filing for bankruptcy in the United States at the end of last year. Following that, Country Garden, another major real estate developer in China, also encountered issues, leading to a wave of foreign capital outflows.
On January 24th, the Governor of the People’s Bank of China, Pan Gongsheng, announced that the reserve requirement ratio for deposits would be lowered by 0.5% starting from February 5th. This move aims to provide long-term liquidity to the market and has led to a sharp rise in stocks, particularly those listed on the ChiNext board (stock code: 601).