IDCBF - China's central bank lowers banks' reserve ratio to bolster liquidity
The People’s Bank of China will cut the required reserve ratio for financial institutions by 0.5 percentage points on Dec. 15, 2021, a move that injects liquidity into the country’s economy.. That will bring the weighted average RRR for financial institutions to 8.4% after the reduction. The central bank stresses that pursuing stability is its top priority. It will “refrain from indiscriminate liquidity injection, and strike a balance between internal and external equilibria.” It added: “The PBC will keep the liquidity adequate at a reasonable level, and keep the growth of money supply and the aggregate financing to the real economy basically in line with nominal GDP growth.” Stocks to watch include: Industrial and Commercial Bank of China (OTCPK:IDCBY) (OTCPK:IDCBF), Bank of China (OTCPK:BACHF) (OTCPK:BACHY), China Construction Bank (OTCPK:CICHY) (OTCPK:CICHF). Last week, the country’s central bank said it doesn’t expect the risks of any one real estate firm in the
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China’s central bank lowers banks’ reserve ratio to bolster liquidity