17 Jul 2015
China is not worried about further drops in equities – BBH
FXStreet (Edinburgh) - The research team at BBH argued that the Chinese government has enough measures to bolster equity markets.
Key Quotes
“China revealed more support measures”.
“Officials said that the government’s margin finance and liquidity facility (China Securities Finance Corp.) has RMB2.5-3 trln available to support stocks via liquidity to brokerages and mutual funds”.
“Meanwhile, China Development Bank and the Export-Import Bank of China will get $32 bln and $30 bln, respectively, from the PBOC’s FX reserves in exchange for equity stakes”.
“The measures show that the government still has plenty of tricks up its sleeves to prop up equity markets”.
Key Quotes
“China revealed more support measures”.
“Officials said that the government’s margin finance and liquidity facility (China Securities Finance Corp.) has RMB2.5-3 trln available to support stocks via liquidity to brokerages and mutual funds”.
“Meanwhile, China Development Bank and the Export-Import Bank of China will get $32 bln and $30 bln, respectively, from the PBOC’s FX reserves in exchange for equity stakes”.
“The measures show that the government still has plenty of tricks up its sleeves to prop up equity markets”.