Jason Douglas of The Wall Street Journal tells his readers that the central bank of China is sending a signal that officials are eager to curb a stock selloff and support the economy. Douglas writes:
China’s central bank announced new steps to boost bank lending to households and businesses, an early move in what is expected to be a broad but restrained campaign by authorities to prop up growth this year after a lackluster 2023.
It comes on the heels of signs of gathering government support for China’s swooning stock market, with investors detecting a rash of share buying by pension funds, insurers and other state-linked firms.
The cut to banks’ reserve requirements—announced unexpectedly by People’s Bank of China Governor Pan Gongsheng during a press conference on Wednesday in Beijing—sends a new signal that officials are feeling growing pressure to curb the stock-market selloff, while also stepping up support for the broader economy. […]
“The authorities are clearly concerned about the market sentiment,” Raymond Yeung, chief economist for Greater China at ANZ Bank, told clients after Pan’s unexpected announcement.
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