I posted earlier on what the PBoC says they are going to do:
- People's Bank of China will soon cut reserve requirement ratio by 50bp
- People's Bank of China will soon cut 7-day reverse repo to 1.5% from 1.7%
In brief:
- will cut reserve requirement ratio for banks by 50bp
- will cut 7-day reverse repurchase rate from 1.7% to 1.5%
- will cut down payments for 2nd homes
- will cut outstanding mortgage rates for individual borrowers by an average of 0.5%
The caveat on all of this is that the Bank made no time line commitment.
Other measures:
- will allow funds and brokers to tap PBoC funding to buy stocks
- PBoC Governor said we might cut RRR rate further by year end
- MLF will be lowered by 0.3%
- LPR will be lowered by 0.2 to 0.25%
Again, no specific time line given for all this.
Neverthelss, Chinese stocks have jumped. Property stocks are up nearly 5%.
