Economic Information Daily says more stimulus coming
The Chinese government will unveil at least 10 new policy measures to stabilize growth in the final three months of the year, according to a front-page story in the state-sanctioned Economic Information Daily.
The report said more interest rate and deposit reserve cuts could be expected from the PBOC .
The report also said the central bank is likely to expand the liquidity injections in the Pledged Supplementary Lending program. It's currently available only to the China Development Bank but will be expanded to two other official investment arms.
A new list of projects for Public and Private Partnership may also be revealed and the PBOC may also boost this year's lending quota, the report says.
These are all far too many details for it to be anything other than a virtual announcement. China is headed for Golden Week holidays later this week and the government wants to make everyone feel warm and fuzzy beforehand.
This report isn't getting much attention yet but it will. This could be very good news for risk assets and Chinese stocks in the hours ahead. It's yet another clear sign that China isn't playing around and will do whatever it takes to keep the economy growing.
