print-icon
print-icon
premium-contentPremium

China Stimulus Ignites "Increasingly Friendly" Regime For Stocks, But...

Tyler Durden's Photo
by Tyler Durden
Tuesday, Sep 24, 2024 - 02:40 PM

This article is so good
it's for premium members only.

Does that sound like you?

Already a member? Sign in.

PREMIUM


ONLY $30/MONTH

BILLED ANNUALLY OR $35 MONTHLY

All BASIC features, plus:

  • Premium Articles: Dive into subscriber-only content, market analysis, and insights that keep you ahead of the game.
  • Access to our Private X Account, The Market Ear analysis, and Newsquawk
  • Ad-Free Experience: Enjoy an uninterrupted browsing experience.

PROFESSIONAL


ONLY $125/MONTH

BILLED ANNUALLY OR $150 MONTHLY

All PREMIUM features, plus:

  • Research Catalog: Access to our constantly updated research database, via a private Dropbox account (including hedge fund letters, research reports and analyses from all the top Wall Street banks)

Amid the market's seasonally-weakest period of the year - but with stocks juiced to record highs on The Fed's crisis-like 50bps rate-cut - China's PBOC unleashed one of the largest / strongest moves since the height of COVID.

Until now, its been fairly piecemeal in nature and rather uncoordinated leaving lukewarm reactions, but today's announcement was significant...

  • 150bp RRR cut releasing 1trn CNY, with scope to cut more by year-end dependent on ‘market conditions’

  • 450b CNY OMO to take us over Golden Week

  • 20bp 7d repo rate cut from 1.70% to 1.50%

  • 1y MLF rate cut by 30bp from 2.30% to 2.00%

  • Continue to reduce mortgage rates down on existing loans by 50bp.

  • Liquidity facilities from which dealers/funds can borrow funds from the PBOC to buy mainland stocks

  • Expansion of funding program to support social housing purchases of unsold inventory.

  • Deposit rate cuts to neutralize impact of funding on bank margins

Want more of the news you won't get anywhere else?

Sign up now and get a curated daily recap of the most popular and important stories delivered right to your inbox.