Zhongtai's Chief Strategy Analyst Xu Chi stated that a moderately loose monetary policy is the most direct policy change affecting the market. This may imply that the tolerance for exchange rate fluctuations next year may be relatively higher than before, which will bring additional space for interest rate and reserve requirement ratio cuts in monetary policy. This is an important reason for the bond market hitting new highs at the end of the year. Regarding the specific magnitude of interest rate cuts and reserve requirement ratio cuts, Xu Chi mentioned that, given the central bank has announced a reserve requirement ratio cut of 25 to 50 basis points by the end of the year, it is expected that there may be about two more opportunities for interest rate cuts in the first half of next year, with a total reduction of approximately 50 basis points.