Amid the market's seasonally-weakest period of the year - but with stocks juiced to record highs on The Fed's crisis-like 50bps rate-cut - China's PBOC unleashed one of the largest / strongest moves since the height of COVID.
Until now, its been fairly piecemeal in nature and rather uncoordinated leaving lukewarm reactions, but today's announcement was significant...
150bp RRR cut releasing 1trn CNY, with scope to cut more by year-end dependent on ‘market conditions’
450b CNY OMO to take us over Golden Week
20bp 7d repo rate cut from 1.70% to 1.50%
1y MLF rate cut by 30bp from 2.30% to 2.00%
Continue to reduce mortgage rates down on existing loans by 50bp.
Liquidity facilities from which dealers/funds can borrow funds from the PBOC to buy mainland stocks
Expansion of funding program to support social housing purchases of unsold inventory.
Deposit rate cuts to neutralize impact of funding on bank margins
