PBoC announces a slew of measures that sends the HSI and HSTECH rocketing
This morning at 9AM, the Peoples' Bank of China (PBoC) held a rare joint briefing with the CSRC and NFRA to announce a slew of stimulus measures including a cut in banks’ reserve ratio by 0.5%, a trim in the 7-day reverse repo rate by 0.2% to 1.5%, as well as downpayment ratios on second homes being reduced from 25% to 15%
The PBOC will also ramp up its relending program for banks as part of its housing rescue package. PBOC governor Pan Gongsheng said it will provide money worth 100% of the principal of bank loans extended to regional state-owned enterprises to buy unsold homes at reasonable prices, up from 60% when the program was announced in May.
On the back of these announcements, the HSI September futures has opened 1.7% higher to 18,564 while the HSTECH September futures are 2.2% higher to 3,784, both as of 915AM
