The People’s Bank of China (PBoC) announced on Wednesday it would cut the amount of cash that commercial banks have to have on hand, known as the reserve requirement ratio (RRR), by 50 basis points from May 15. PBoC Governor Pan Gongsheng said the cut would result in long-term liquidity of about 1 trillion yuan ($138.56 billion) flowing into the financial market. The PBoC also announced it would trim the seven-day reverse repurchase rate to 1.4% from 1.5%, effective May 8. This will lead to a 10 basis point cut to the loan prime rate (LPR), Pan said. Additionally, a gradual lowering of the reserve ratio for auto finance firms will bring it down from 5% to 0%. He was speaking alongside officials from the National Financial Regulatory Administration and the China Securities Regulatory Commission. These officials announced that 300 billion yuan in new re-lending funds will be allocated to boost technological innovation and industrial upgrades. Furthermore a 500-billion-yuan relending tool form consumption and elderly care will be established.
NN: china made the wrong bet.
China cannot survive without the US market. their economy is already crumbling. layoffs are spreading like wild fire. the natives are restless and Chairman Li will soon be purged as they cave in to US demands. And he will be replaced by Chinese billionaire entrepreneur Swedish car brand Volvo. The company has also bought stakes in U.K. luxury sportscar maker Aston Martin and electric vehicle manufacturer Lotus Technology. And he is really really pissed at present China leadership over screwing up trade with the US. In China if you bet wrong you die.