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From Forexlive:
- Zong Liang, deputy chief of the research institute of Bank of China, said the targeted reserve cut announcement by the State Council last Friday, as well as the reserve cut for county-level rural banks in April, may release around CNY300 billion into the rural and small enterprise sector. He ruled out the possibility of a broad reserve cut
- Guo Tianyong, an economist with Central University of Finance and Economics, expects the PBOC to cut the reserve ratio for qualified banks by 0.5 to 1 percentage point
That’s roughly .7% of GDP worth of dollars when loaned, which is useful but previously announced. Also out this morning are the China non-manufacturing PMI up at 55.5 versus 54.8 last month and the HSBC final PMI which eased back from the Flash reading of 49.7 to 49.4.
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I’ll be honest with you, markets are over-excited about a China rebound today. These are stabilisation figures and no more.
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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