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5 Feb 2015
PBoC’s RRR cut fails to appease Chinese markets – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team shares that Chinese equities saw only a modest rally on the PBoC RRR cut.
Key Quotes
“The muted response in China markets following the overnight 50bp RRR cut by the PBoC speaks to the extent to which this easing has been anticipated in the recent run-up.”
“Shanghai Composite opened up 2.4% but has entered its break up only 1%. In contrast, the rate cut in November sparked a 7% rally.”
“In notable local press, China Daily said the cut is unlikely to reverse property market correction, CICC remarked financials would be the main beneficiaries of earlier than expected RRR move, and a separate report called for a more proactive fiscal policy to accompany monetary stimulus.”
Key Quotes
“The muted response in China markets following the overnight 50bp RRR cut by the PBoC speaks to the extent to which this easing has been anticipated in the recent run-up.”
“Shanghai Composite opened up 2.4% but has entered its break up only 1%. In contrast, the rate cut in November sparked a 7% rally.”
“In notable local press, China Daily said the cut is unlikely to reverse property market correction, CICC remarked financials would be the main beneficiaries of earlier than expected RRR move, and a separate report called for a more proactive fiscal policy to accompany monetary stimulus.”