Power trying to hold on to power.
Same thing done in the US and for all illegals around the world.
— floridanow1 (@floridanow1) September 26, 2024
China Weighs $142 Billion Capital Injection Into Top Banks
(Bloomberg) China is considering injecting up to 1 trillion yuan ($142 billion) of capital into its biggest state banks to increase their capacity to support the struggling economy, according to people familiar with… pic.twitter.com/aOdjFScrkM
— Tracy Shuchart (𝒞𝒽𝒾 ) (@chigrl) September 26, 2024
Oil prices end lower as optimism over China stimulus plan fades
The rally on Tuesday, spurred by the announcement of Chinese stimulus measures, has fizzled, the Kansas City energy team at StoneX, led by Alex Hodes, wrote in its Wednesday’s newsletter.
“Expectations are that this round of stimulus won’t be sufficient to buoy the sluggish economy,” they said. China is the world’s largest crude importer. “Still, there’s optimism that China may introduce further stimulus in the coming months, the StoneX team said.
China’s Bold Stimulus Measures Won’t Save Its Flagging Economy
After months of business leaders and economists urging action, the People’s Bank of China (PBoC)—the central bank of the world’s second biggest economy—finally acquiesced, unleashing a triptych stimulus package aimed at spurring consumer spending to counter persistent deflation. Yet analysts doubt even this “policy bazooka” will have much of an effect.
On Tuesday, the PBoC unveiled a policy interest rate cut of 0.2 percentage points, combined with a lowering of banks’ reserve requirements and the cutting of existing mortgage interest rates, both by 0.5 percentage points. For the PBoC to unveil three rate cuts at once is itself unprecedented. But also was the floating of a potential 0.25 or 0.5 percentage point further cut to reserve requirements before the end of the year, given the PBoC hasn’t historically dabbled in so-called “forward guidance.”
But that’s not all. The PBoC also announced plans to inject more liquidity into the stock market by refinancing bank loans to help firms buy back their own shares . It will also help institutional investors such as securities companies raise funds by allowing them to borrow liquid assets using their own stock holdings as collateral. “It is the first time I’ve ever seen the Chinese central bank directly use its own money to support the stock and real estate markets,” says Lu Xi, an assistant professor focusing on China’s economics at the National University of Singapore.
The purpose of all these unprecedented maneuvers is to jumpstart a moribund economy that’s currently on course to miss an official annual GDP growth target of “around 5%.” While China’s exports for August were up a robust 8.7% year-on-year, imports rose by just 0.5%, spotlighting weak domestic spending. Meanwhile, a raft of nations rolling out new export controls, including a 100% tariff on Chinese EVs by the U.S. and Canada, means exports also face significant headwinds.
Yet while the PBoC measures may provide some relief for firms facing falling factory gate prices, or local governments struggling with servicing record debt, experts are pessimistic they alone will get the Chinese economy humming again.
time.com/7024607/china-economy-pboc-stimulus-interest-rate-cut-analysis/
BREAKING NEWS
CHINA TO ISSUE $284 BILLION OF SOVEREIGN DEBT THIS YEAR TO HELP REVIVE ECONOMY
$284 billion.
This is going to get wild.
— Gold Telegraph ⚡ (@GoldTelegraph_) September 26, 2024