FINSUM + Magnifi: Chinese Central Bank Floods the Market

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July 9, 2021

Much of the attention has been on the Fed and how they will respond to the U.S. economy, but the Chinese central bank made a splash with policy news this week. The People’s Bank of China will free up about one trillion yuan, about $154.19 billion, by lowering the minimum reserve requirement of its country's banks. PBOC will lower the reserve requirement ratio by 50 basis points to do this. The post-pandemic run has been strong for China’s economy, but it has stalled as of late. Peak demand and growth rates are coming down and weakening exports stemming from producer price inflation are slowing the economy. The PBOC says monetary policy will remain unchanged and the change in reserve requirements will help repay the maturing debt and ease the tax burden.

(Beijing)

FINSUM + Magnifi: A year-end close of 4300 promises both volatility and some slumps. Funds that benefit from volatility or reverse performance will combat a second half that looks like this. 

Other news today: Goldman Sachs Says the Bull Run Is Over and The Best Value Buys in Every Industry New call-to-action

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