USD and RMB
The Chinese cabinet has vowed stronger monetary policy support in a bid to continue the stable expansion of credit as the country seeks to support the economy moving forward. MCHI is down 4.32%.
- The cabinet said it will keep policies that boost the economy and keep away from measures that will dampen market sentiment.
- Officials noted the need to observe international developments which could impact the domestic capital market, with the economy facing pressure.
- The cabinet also unveiled a 1-trillion-yuan tax refund which it intends to release to smaller firms.
- The announcement comes after China kept borrowing costs at the current pace earlier this week, despite market players expecting a reduction.
- Economists expect that the monetary policy action could come in the reserve requirement ratio after cuts imposed in July and December 2021.