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China’s central bank has signaled that more support for the economy could be on the way, while its financial regulators are looking to woo the world’s biggest investors at a time when its economy has been hit by persisting weakness and geopolitical tensions.
Officials at the People’s Bank of China hinted at adjustments to the reserve requirement ratio and medium-term lending facility to ensure sufficient liquidity, as well as easing of property controls, Bloomberg reported. However, they did not signal any rate cuts.
“We still have ample policy room to deal with unexpected challenges,” said Deputy Governor Liu Guoqiang. “We need to be patient in the economy’s steady growth.”
Xing Zhaopeng, senior China strategist at ANZ, said the officials’ overall tone is “very dovish”. “It clarifies that monetary policy support will be increased.”
Shoring up confidence
In separate news, China’s financial regulators invited some of the world’s top investors to a rare symposium next week, Reuters reported citing three sources, as the country moves to shore up foreign investor confidence in its economy.
The symposium in Beijing will focus on the challenges faced by U.S. dollar-denominated investment firms in China. Major fund managers and their investors, including sovereign wealth funds and pension funds, will likely attend.
The event comes at a time when the Chinese economy has struggled to sustain its post-pandemic recovery. Compounding its woes, China’s ties with the U.S. have further weakened, given national security issues including Taiwan and export bans.
The symposium also follows the possible end of China’s crackdown on the technology sector after the central bank imposed fines on Ant Group and Tencent (OTCPK:TCEHY). China’s Premier Li Qiang also met with executives from internet companies including Alibaba (BABA) and JD.com (JD).
