Regarding the 50bp RRR cut: - They did flag....>

PBOC: Regarding the 50bp RRR cut:

- They did flag that a move was coming earlier this week, after the end of the

State Council meeting, with various statements from high ranking policymakers

and commentary in state media since.

- Looks like the initial RRR move goes into play on 16 Sep, with the additional

reductions for the qualifying banks tiered through October 15 and November 15.

- They have favoured staggered moves recently.

- Circa CNY900bn will be released by the move.

- The China Securities Journal saw analysts point to an MLF rate cut in the

middle of this month.

- This put focus on the MLF that comes due on 17th September, as opposed to the

round maturing on 9th September, this coming Monday. Both come before the next

LPR fixing (20 Sep).

- Monday open in Shanghai worth watching.