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COVID Vs. Heightened Chances Of RRR Cut

CHINA STOCKS

The early uptick in the major Chinese equity indices fades, with the impulse from increased chances of an imminent RRR cut (after the State Council meeting that we have covered elsewhere) mostly offset by a continued climb in new daily COVID cases in China, with that measure now topping its previous ’22 peak. The potential impact of any prospective RRR cut is debatable, with transmission to the real economy hampered by the implementation of the dynamic COVD zero policy in the country, as opposed to a lack of lendable funds on hand at banks.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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