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CHINA PRESS: PBOC Expected To Cut RRR In Q4 - Analysts

CHINA PRESS
EM BulletAPACChinaEmerging Market NewsBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets

The People’s Bank of China is expected to cut the reserve requirement ratio within the year, given the continuous contraction in manufacturing PMI, prices and real-estate sector, China Securities Journal reported, citing analysts. Wang Qing, analyst at Golden Credit Rating, expects a 50 basis point cut in Q4, releasing CNY1 trillion to mainly support government-bond issuance. Li Yishuang, chief fixed income analyst at Cinda Securities, expects a Q4 RRR cut given the large amount of medium-term lending facilities maturing, while February’s reduction can still cover the long-term liquidity requirements such as financial institutions’ reserve holdings, given the sharp decline in deposit growth this year.
 

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The People’s Bank of China is expected to cut the reserve requirement ratio within the year, given the continuous contraction in manufacturing PMI, prices and real-estate sector, China Securities Journal reported, citing analysts. Wang Qing, analyst at Golden Credit Rating, expects a 50 basis point cut in Q4, releasing CNY1 trillion to mainly support government-bond issuance. Li Yishuang, chief fixed income analyst at Cinda Securities, expects a Q4 RRR cut given the large amount of medium-term lending facilities maturing, while February’s reduction can still cover the long-term liquidity requirements such as financial institutions’ reserve holdings, given the sharp decline in deposit growth this year.