11 Jul 2013
Flash: Chinese liquidity measures underway? – Deutsche Bank
FXstreet.com (New York) - The BoJ left its policy settings unchanged, while else where in Asia there is increasing chatter about some form of stimulus plan or targeted policy support being formed by the Chinese government in order to prevent growth from slipping too much, note Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank.
Chinese equities were boosted yesterday by reports that the PBoC could cut bank's reserve requirement ratios in order to increase liquidity in the system. The recent events in the Chinese banking system took an interesting twist yesterday when the South China Morning Post reported that more than 1000 people had besieged the PBoC's branch in Guangxi province after false reports had spread that the central bank would grant interest-free and subsidized loans to those who show a credit report.
Chinese equities were boosted yesterday by reports that the PBoC could cut bank's reserve requirement ratios in order to increase liquidity in the system. The recent events in the Chinese banking system took an interesting twist yesterday when the South China Morning Post reported that more than 1000 people had besieged the PBoC's branch in Guangxi province after false reports had spread that the central bank would grant interest-free and subsidized loans to those who show a credit report.