China’s Economic Information Daily cites an unidentified source saying that the China Banking Regulatory Commission has decided to delay tighter capital requirements that were scheduled to to take effect early in the year.
“As economic growth is slowing down, banks need a sufficient capital base so they can support the real economy sector,” the source was quoted as saying.
Stories like this often take some time to circulate but this is significant enough to pump up sentiment, and risk trades. Long AUD/USD would be the most straightforward trade.
