These episodes were apt to be costly for those directly affected and reminded investors that investments pose risks, and that prudence requires that these risks be understood and managed. Overall, however, because these episodes were well contained and of short duration, they may have left investors too complacent, and therefore contributed to postponing an overdue repricing of risk.
According to the estimates based on the statistics of the PBC and the CBIRC, in the first 10 months this year, the financial system waive profits of around RMB1.25 trillion in favor of the real economy, through channels including interest rate cuts, the two tools providing direct support for the real economy, fee reduction, and support for enterprises’ restructuring and debt-for-equity swaps.