China’s central bank is said to be injecting 500bn yuan ($81bn; £50bn) into the five biggest state-owned banks to counter slowing growth in the world’s second-largest economy.
The People’s Bank of China (PBOC) is reportedly giving each bank a $100bn low-interest loan over three months.
The move may be the first of several stimulus measures, analysts say.
It is aimed at lifting business confidence and investment following a string of weak economic data.
China’s economy showed more evidence of a slowdown with industrial production and foreign direct investment hitting multi-year lows in August.
The five lenders said to be receiving the stimulus are the Industrial & Commercial Bank of China, China Construction Bank, Agricultural Bank of China, Bank of China and Bank of Communications.
The move was first reported by local Chinese news website Sina.com. Other media reports cited a government official and a senior Chinese banking executive.
Chinese banking shares traded in Hong Kong rose on the news.
via BBC
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Alfonso Esparza
Latest posts by Alfonso Esparza (see all)
- Market Rally Still Going Low Holiday Volumes Awaiting Start of 2020 - 27 December 2019
- Market Awaits China Retaliation on Trade - 29 November 2019
- Alibaba to Close Order Book Ahead of Huge IPO - 18 November 2019