VIEW: CIBC writes "A recent statement from....>

CHINA: VIEW: CIBC writes "A recent statement from Chinese Premier Li calling for

a RRR cut 'soon', is widely accepted code that the same will very likely be

delivered within the next few days. Cutting of the RRR following the local

market close on a Friday, would be a familiar move. A cut in the RRR will

continue a multi-pronged response to prop the economy in the wake of the

coronavirus outbreak. Immediate policy support can only go so far to damp the

impact of shuttered businesses and now more seriously, heightened threats to

global activity and demand. Still, cutting of the RRR, injections of liquidity

and reducing medium-term lending rates, and ongoing fiscal support, will assist

to smooth the way for the economy once a recovery (and we certainly still expect

that to be the case finally takes hold."