PBOC Pumps in More Liquidity, Spurring Gains in Chinese Stocks

  • There’s more room for policy action in 1H: Credit Agricole
  • Central bank leaves one-year policy loan rate steady at 2.85%

Outside the People's Bank of China (PBOC) in Beijing.

Photographer: Andrea Verdelli/Bloomberg
Lock
This article is for subscribers only.

China’s central bank stepped up support for its slowing economy by pumping in cash via policy loans for a second straight month. The benchmark stock index advanced, outperforming regional equities.

The People’s Bank of China injected a net 100 billion yuan ($15.7 billion) into the banking system with its medium-term lending facility, while leaving the borrowing rate unchanged. The CSI 300 rose as much as 1.1%.