injection into china banks likely first of stimulus measures
Last Updated : GMT 22:59:06
Arab Today, arab today
Arab Today, arab today

Injection into China banks 'likely first of stimulus measures'

Arab Today, arab today

Arab Today, arab today Injection into China banks 'likely first of stimulus measures'

Online portal Sina
Shanghai - AFP

A reported $81 billion injection into China's major banks is probably the first of a series of fresh stimulus measures by Beijing to bolster its flagging economy, the world's second largest, analysts said Wednesday.
Online portal Sina late Tuesday quoted financial institutions as saying the People's Bank of China (PBoC), the central bank, would channel 500 billion yuan ($81 billion) into the country's five biggest banks, all state-owned. The PBoC has not confirmed the move.
"We believe Beijing (is) to introduce a slew of other easing and stimulus measures in coming weeks to re-boost confidence and re-stabilise growth," said Bank of America Merrill Lynch China economist Lu Ting.
Expected measures include "targeted" cuts in the amount of funds banks must place in reserve, speeding up development projects and quicker fiscal spending, he said in a research note.
Hong Kong's Hang Seng Index closed up 1.0 percent on Wednesday on the report.
Mainland China's two stock markets were less impressed, with the benchmark Shanghai Composite Index finishing 0.49 percent higher and the tech-heavy Shenzhen Composite Index gaining 0.66 percent.
US stocks earlier reacted to the report on Tuesday with the Dow Jones Industrial Average rising 0.59 percent to 17,131.97 points and the broad-based S&P 500 up 0.75 percent at 1,998.98.
The Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Agricultural Bank of China and Bank of Communications will receive the funds in equal amounts over three months through the central bank's so-called Standing Lending Facility, a tool it uses to manage short-term liquidity, Sina and analysts said.
The report follows a string of weak data for August, including a five-year low for industrial output growth and a surprise drop in imports, which have put in peril the government's target of 7.5 percent annual economic expansion for this year.
"Such a move highlights the fact that China's policymakers are sensitive to the significant weakening seen in the August activity data and the move would be in line with our call that monetary policy will be eased further to boost the economy," Nomura said in a research note.
- 'Property downturn' -
China's gross domestic product grew 7.5 percent year-on-year in the second quarter this year, improving from 7.4 percent in the first quarter, which was the worst since a similar 7.4 percent result in July-September 2012.
But some analysts played down the impact of the anticipated move.
"The impact of such a move on boosting corporate investment and supporting real economic growth will be relatively limited in our view, as the property downturn continues to worsen, excess capacity accumulates and business outlook remains weak," said Wang Tao, head of China economic research at investment bank UBS.
Analysts said the scale of the injection was equivalent to around a 0.50 percentage point cut in the reserve requirements for banks, the amount of funds they are required to set aside.
"We expect monetary conditions to loosen modestly, which will provide some much-needed support for demand growth," Goldman Sachs said in a research note.
Although further measures are anticipated, analysts said, some rejected the possibility of China cutting reserve requirements across the board or slashing interest rates.
China's central bank set up the Standing Lending Facility in 2013 to meet liquidity demands from banks, typically from a one- to three-month period, using it in both June and September last year, as well as in January.
The PBoC only reports use of the lending facility on a quarterly basis.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

injection into china banks likely first of stimulus measures injection into china banks likely first of stimulus measures

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

injection into china banks likely first of stimulus measures injection into china banks likely first of stimulus measures

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Banyan Tree Phuket Takes Festive Season

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Top Democrat faces investigation

GMT 09:50 2017 Friday ,17 November

Top Democrat faces investigation
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Angola oil boss sacked by father's protege

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Urban, young and active?

GMT 11:01 2017 Thursday ,16 November

Urban, young and active?
Arab Today, arab today Ayten Amer happy for “The Flood” success

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success
Arab Today, arab today Unloved vultures fight for their survival

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 08:21 2017 Tuesday ,14 November

Nelly Karim focuses on humanitarian roles

GMT 09:23 2017 Wednesday ,15 November

Years melt away as Bening & Bell play unlikely lovers

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 13:40 2017 Monday ,13 November

Pollution spikes in Delhi amid warnings

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 10:55 2017 Thursday ,16 November

UN warns fuel running out

GMT 01:04 2017 Wednesday ,15 November

In Morocco, a blue tourist town

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday