China's Rush to Save the Economy and the Stock Market: Timeline

  • Five rate cuts since November show policy makers' resolve
  • Government intervention has failed to stem an equities rout

Here are the major policies taken by the Chinese government and the central bank to arrest a deepening economic slowdown and to stabilize stock prices.

Aug. 25
* The PBOC cut benchmark lending and saving rates for the fifth time since November 2014 and lowered banks’ required reserve ratio by half a percentage point after the stock market recorded the steepest falls since 1996.

Mid Aug.
* PBOC conducts biggest open-market weekly liquidity additions since February

Aug. 12
* China industrial production, investment and retail data trailed analysts’ estimates, adding downward pressure.

Aug. 11 2015
* PBOC devalues the yuan.

July
* China recapitalizes policy lenders to boost their lending capabilities.

July 15
* Second quarter GDP rises 7 percent from year earlier

July
* China creates what amounts to a state-run margin trader with $483 billion of firepower in an effort to end a stock-market rout.

June-July
* Authorities plan at least 1 trillion yuan ($156 billion) in bonds, and potentially a multiple of that, to fund construction projects.

June 27
* PBOC cuts interest rates, RRR for most banks.

Mid June
* Stock market begins its plunge from peak as margin trades unwound

June 12
* China stock index hits highest level since 2008.

June
* Policy makers consider doubling size of local bond-swap program.

May 10
* PBOC cuts interest rates, raises deposit rate ceiling to 150 percent of the benchmark in a further liberalization move.

April
* PBOC recapitalizes policy banks to add stimulative punch

April 19
* PBOC cuts banks’ RRR by 1 percentage point to 18.5 percent

April 15
* Government says first quarter GDP growth slowed to 7 percent

March 5
* Premier Li lowers GDP target to about 7 percent

Feb. 28
* PBOC cuts interest rates and raises the deposit rate ceiling to 130 percent of the benchmark.

Feb. 4
* PBOC cuts banks’ RRR by half a percentage point to 19.5 percent.

Feb. 1
* Factory gauge signals contraction for first time in more than two years

Jan. 22
* China conducts reverse-repurchase agreements to inject money, the first time in a year.

Jan. 20
* Data shows economy grew 7.4 percent in 2014, close to target

Nov. 21, 2014
* PBOC cuts interest rates for the first time since July 2012 -- with 0.4 percentage point cut in one-year lending rate and 0.25 percentage point cut in one-year deposit rate, kicking off its easing cycle.

— With assistance by Xin Zhou

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