China Rural Reserve Expiry Shows Hard Landing Focus, SocGen Says
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Wee-Khoon Chong, a Hong Kong-based fixed-income strategist at Societe Generale SA, discusses China’s monetary policy in an e-mail.
The requirement for reserve ratio of 16.5 percent for more than 20 rural cooperative banks will expire this month, and it will revert back to 16 percent, according to an e-mailed statement from the Hangzhou branch of the People’s Bank of China today. The one-year non-deliverable interest rate swap fell 14 basis points today to 2.95 percent, while the five-year rate dropped 16 basis points to 2.94 percent.