Quotes
We still believe it will be quite challenging for Beijing to achieve its 'around 5 per cent' growth target unless it rolls out a sizable stimulus package."
Nomura’s chief China economist Ting Lu remarked The reduction in deposit costs partly mitigates the impact of lower asset yields, which remain under pressure as banks are expected to support the real economy.”
Moody’s analyst Nicholas Zhu commented At the margin, the rate cuts may provide a minor tailwind for stocks, but it was widely expected and it’s obvious that credit access is not the thing holding borrowers back right now. Confidence remains weak, and the government needs to do more to improve that via the fiscal channel,
David Scutt, APAC market analyst at StoneX, Australia, said The resumption of US-bound shipments will naturally reduce the need to re-route shipments. Front-loading will inevitably be followed by a significant payback effect after the 90-day pause ends on 12 August,
With the resumption of US-China trade talks, the left-tail risk of miscalculation between the US and China could be more contained than before, in our view,
But modest rate cuts alone are unlikely to meaningfully boost loan demand or wider economic activity,
The central bank is likely to switch to a wait-and-see approach in coming months unless external geopolitical risks deteriorate enough to extinguish hopes that the economy can stabilise,
One purpose is to repair commercial banks' net interest margin and get prepared for the future,
Xing said, expecting one more rate cut by the end of July The policy to further reduce interest rate will help lower mortgage loans costs, which also should stimulate the housing consumption demand,
The cut in LPR, the first round this year, has shown that the comprehensive financial support policies have led to further easing of monetary and credit policies, which in turn has reduced the borrowing costs of medium- and long-term funds,
Yan Yuejin, research director at Shanghai-based E-house China R&D Institute, told the Global Times on Tuesday Deflation could linger, given still elevated tariffs and reactive policy,
Morgan Stanley added, as higher tariffs will ultimately dampen external demand after the near-term export front-loading activity tapers off, exacerbating domestic excess capacity issue The rate cuts will reduce interest payments on existing loans, taking some pressure off indebted firms. It will also reduce the price of new loans,
Zichun Huang, China economist at Capital Economics, said in a note Today's reductions... probably won't be the last this year,
