CITIC Securities: LPR may be improved, and the expectation of interest rate cuts is heating up

On July 19th, Jin10 Data reported that CITIC Securities research report pointed out that with reference to overseas experience and recent policy statements, the LPR quotation mechanism may be improved to enhance policy efficiency and marketization. In the short term, LPR quotation is expected to be lowered, creating more suitable policy conditions for credit recovery. With the advancement of LPR reform and the continuous decline in financing costs, it is expected that the potential for loan issuance will be further released. Although the short-term growth rate is difficult to rebound significantly, the overall structure will be optimized and the quality and efficiency of Financial Service entities will also be improved.