China: Targeted support and cautious stabilization signs – Societe Generale
Societe Generale analysts note China has unveiled targeted support measures, including a 25bp cut to the PBoC’s PSL rate and expanded relending quotas for innovation, technology, agriculture and small businesses.
Societe Generale analysts have observed China recently implementing targeted support measures and cautiously stabilising its economy. These measures include a 25 basis point reduction in the People's Bank of China's (PBoC) Prime Lending Rate (PSL) to 1.50% from 1.75%, expanded relending quotas for innovation, technology, agriculture, and small businesses, and mortgage subsidies for first-time buyers of smaller homes.
However, these incremental steps did not spark enthusiasm in equity markets, as they fell short of the broader policy announcements made in September 2024.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
