, Columnist
The China Trade May Be Just Starting to Unravel
Beijing’s monetary easing is a bad sign for global reflation prospects and risk appetite.
The China trade is looking a little frayed.
Photographer: Mike Kemp/Getty Images
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The biggest financial news to start the week is that China is cutting its reserve requirement ratios, or RRRs, for all banks. This means that they can lend more, and so injects more money into the Chinese economy. It is a loosening move that means more liquidity.