China reduces the main interest rate to 1.4 %

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China said it will reduce the standard interest rate and reduce the amount of money needed to maintain reserves, and provide support for the economy in the face of the trade war with the United States.

Ban Gongcheng, the ruler of long -term liquidity in the banking system, said that China will reduce the percentage of bank reserve requirements by 0.5 percentage points and reduced many major interest rates for the release of Rangerieki ($ 138 billion) of long -term liquidity in the banking system. Popular Bank of China.

Speaking at a press conference on Wednesday, along with officials from two other financial organizations, Ban said that the central bank would reduce the standard for seven days by 0.1 percent to 1.4 percent, and reduce deposit and other interest rates to provide loans.

Beijing put forward measures amid bruises Trade war with the United States This began to hit the vast manufacturing sector in the country, as many export orders were canceled and factories began to leave workers and reduce production.

Beijing and Washington said on Wednesday that they will hold their first trade talks since US President Donald Trump launched a trade war against China, as the two sides are searching for a way to reduce punishment definitions.

The trade war comes as China is already fighting the weak local demand, forcing Beijing in successive waves of monetary policy that has been reduced since last year.

He said that the latest measures were caused by “uncertainty in the global economy, economic fragmentation and commercial tensions, which led to the disruption of global industrial supply chains.”

He said that the reduction in the percentage of bank reserve requirements would reduce the weighted average across the sector from 6.6 percent to 6.2 percent.

Analysts say coordinated policy advertisements reflect Beijing’s desire to support its economy and enhance market confidence before the United States and China negotiations on trade.

“The timing of the package is closely related to the US -Chinese commercial talks,” said Lin Song, the chief economist in Greater China in Engy. “The conducting measures to reduce facilitation now helps to avoid the emergence of the knee response to the definitions.”

PBOC will also reduce the rate of reserve requirements for financial leasing companies, and vehicle financing from 5 percent to zero, a step that will make capital and improve their lending ability.

He said that the cost of providing long -term loans from a government -led program to buy housing by 0.25 percent to 2.6 percent, and Ban said, “to support the strict residential needs of the population and help the real estate market.”

Lee Yuis, Director of the National Financial Organizational Administration, said that China will publish new measures to support exporters “with the aim of stabilizing their operations and helping them to expand their markets.”

He added that China will also reveal new financing mechanisms to support the sick real estate sector and expand a pilot program to pump more money from insurance companies to flow to the stock market.

He told me: “We completely benefit from the advantages of insurance funds as a patient and a long -term capital, and we will allow them to enter and stabilize the market with more strongly.”

Robin Xing, Chinese chief economist in Morgan Stanley, said that the general political position remained “interactive and focused on the show”, and therefore can only compensate for the trauma of customs tariffs in part. But he said that the package overcame the “market expectations, and pointed to a field for further mitigation as needed.”

“RRR is one of the vital moves to reduce
“But stimulus measures must be enormous this year to achieve the goal of the 5 percent GDP in Wednesday’s committee.

The Hong Cong Index of Hong Kong is offered by 2.2 percent in the open, but the gains were cut later in the day. China’s main land index CSI 300 closed 0.61 percent. Renminbi was abroad, which was trading freely, flat per day at 7 yuanin per dollar.

Additional reports by Winji Ding in Beijing