Analysts at Deutsche Bank explains that the markets have bounced off their lows though, especially in China (-1.38% in early trading) as the heads of the PBOC, the banking and insurance regulator and the securities regulator all issued statements overnight voicing their support for the market and promising measures to help ease financial pressures on companies, especially those with a high proportion of pledged shares.
Key Quotes
“The PBOC Governor said in a statement on the central bank’s website that the recent stock market turmoil was caused by investor sentiment. The PBOC is studying measures to ease company’s financing difficulties and will also use monetary policy tool to support banks’ credit expansion. So heavy verbal rather than physical intervention.”
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