CITIC Securities: Short-term interest rate cuts can be needed and feasible, potentially lifting the market.

The research report from CITIC Securities stated that considering the current domestic and international environment, there may be a need and feasibility for a short-term interest rate cut. Weakness in real estate sales data continues, dragging down credit and inflation repair; recent local bond issuance rates have risen, increasing pressure on local government finances. The need for interest rate cuts to support weak real estate, weak credit, and financial pressures. Overseas environment is loose, the RMB is temporarily strong, the interest rate differential between China and the United States is narrowing; commercial banks are adjusting their liability structure, and net interest margins are being repaired, leaving room for interest rate cuts.