Reuters report, citing PBOC source
China plans to introduce lending incentives by boosting liquidity at commercial banks, according to a Reuters source.
This would be in tandem with recent moves to encourage debt and equity stakes in companies and would use the PBOC's medium-term loan facility.
The Shangahi Composite bounced in the middle of this month but has been sliding for most of the year and is down in four straight sessions. The yuan ended yesterday with the weakest closing since Aug 7, 2017.
What's next? China is certainly the spot to watch but it comes back to the trade war. Interestingly, it seems to be losing the battle in terms of the stock market performance this year and maybe that's a sign of things to come.
