All of these are in the posts earlier, but collating them here in brief.
Equity Market Stabilisation:
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Central Huijin, along with the PBOC, will step in as a quasi-stabilisation fund to help maintain stock market confidence.
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An additional 60 billion yuan (US$8.3 billion) from long-term insurance funds will be channelled into equities under an expanded pilot program.
Targeted Liquidity and Credit Support:
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RMB 300 billion in new re-lending funds will be allocated to support technological innovation and industrial upgrades.
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A new RMB 500 billion re-lending facility will be introduced to finance elderly care infrastructure and broader service consumption.
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The People’s Bank of China (PBOC) will expand the quota for capital market support tools to RMB 800 billion to deepen market-based financing.
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A new risk-sharing mechanism will be established to back technology innovation bonds, improving credit support for strategic sectors.
Monetary Tools and Interest Rate Adjustments from the People’s Bank of China:
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The Reserve Requirement Ratio (RRR) will be lowered by 0.5 percentage points to boost banking system liquidity.
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A temporary cut in the reserve ratio for auto finance and leasing firms will bring it down from 5% to 0%, aiming to ease sector-specific funding constraints.
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The 7-day Reverse Repo rate, a key short-term policy rate, will be trimmed by 10 basis points to 1.4%.
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The structural monetary policy rate will be reduced by 25 basis points to support targeted credit expansion.
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Interest rates on individual housing provident fund loans will be lowered by 0.25 percentage points to reduce mortgage borrowing costs.
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The Standing Lending Facility (SLF) rate will be cut by 10 basis points, further easing interbank lending conditions.
People’s Bank of China
This article was written by Eamonn Sheridan at www.forexlive.com.
