Economics

China Adds to Stimulus Drip-Feed as Markets Stumble Again

  • Central bank plans $1.4 billion in private debt support
  • Investors resume stock sell-off, signaling trade war concern
Louise Dudley, portfolio manager at Hermes Investment Management, discusses Chinese equities and the PBOC’s support.(Source: Bloomberg)
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China is responding to the slump in its stock markets and the slowdown in the economy with a trickle of stimulus to stabilize, rather than rejuvenate, investor sentiment.

The central bank plans to give 10 billion yuan ($1.4 billion) to China Bond Insurance Co. to provide credit support for debt sales by private enterprises, Bloomberg reported Tuesday. Along with new tools to boost lending to companies, and a deadlineBloomberg Terminal for the reduction of barriers to foreign investment, the measures add to steps already taken to secure funding and investment for the economy.