Economics
China Promises Cash and Support to Calm Financial Markets
- PBOC to supply money Monday to ensure liquidity and stability
- Government targets virus-hit areas with stimulus, easier rules
Photographer: Qilai Shen/Bloomberg
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China unveiled a raft of measures over the weekend to aid companies hit by the coronavirus outbreak and also shore up financial markets, which are bracing for a sell-off when trading re-starts on Monday.
The central bank will supply cash to money markets and banks were told to lend more and not call in loans to companies in Hubei and other affected regions. In addition, night trading sessions for futures were suspended, some share pledge contracts can be extended, and there was a relaxation of asset-management rules, which were forcing banks to remove implicit guarantees for trillions of dollars of investments.