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ANZ Believe China Will Need To Deploy Further Measures to Boost Sentiment

CHINA

In the wake of the announcement re: the latest RRR cut from the PBoC ANZ write “the authorities are clearly concerned about the market sentiment. Besides the stock market rout, the PBoC wants to mitigate the risk of RMB depreciation."

  • “The authorities will likely launch more measures to stabilise market sentiment, such as mobilising state’s resources to support the stock market.”
  • “In our view, China needs to fix the macroeconomic issue, notably deflation. This requires some structural measures to boost private sector confidence and the long-term outlook of the real estate sector. The measures announced so far does not seem sufficient.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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