Global stock markets plummeted, and the A-shares market crashed. Why are central banks around the world raising interest rates, while the People's Bank of China (PBOC) is effectively cutting rates? At first glance, this seems like a stark contrast. But don't get excited; this isn't a massive "flood" of liquidity to rescue the market, but rather the central bank "changing its anchor." The PBOC just announced that it has set the overnight reverse repo rate at 1.25%, replacing the previous 1.40% for the 7-day reverse repo, making it the new main policy rate. This is tantamount to acknowledging that short-term funds in the market were already at this level, giving it official recognition, and effectively lowering the rate by 15 basis points. Why are interest rates rising globally, while China is effectively cutting rates? Because others fear inflation (for example, oil prices stubbornly sticking above $110), while China fears deflation. But this move by the central bank isn't massive liquidity injection; it's just a more precise adjustment of the regulatory scale. The real "liquidity" depends on how much money is actually injected each day. Therefore, with overseas markets plummeting and A-shares taking a beating, the 15 basis points from the central bank are not a shot in the arm, but rather a painkiller. Don't mistake "changing the benchmark" for "flooding the market with liquidity," and don't rush to buy A-shares at the bottom.