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China will minimize the direct interference from the government on microeconomic activities, China’s state news agency, Xinhua, reported on Monday. 

Additional takeaways

“China will deepen market-based interest rate reform, increase the pricing ability of financial institutions.”

“China will increase two-way fluctuations of yuan, improve market-based currency formation mechanism.”

“China will build a new, effective macroeconomic regulation mechanism.”

“China will make macro regulation more forward-looking, targeted and coordinated.”

“China will further regulate local government financing vehicles, strip them of government financing function.”

“China will steadily push forward legislation of property tax.”

Market reaction

These remarks don’t seem to be having a significant impact on the market sentiment. As of writing, major European equity indexes are gaining between 2.2% and 2.9%.