China: Domestic support beefed up to lift growth – ANZ

ANZ analysts note that several developments in China in the past one week have partly eased concerns about the economy’s near-term outlook, including the progress on the China-US trade talks and the announcement of required reserve ratio cuts and pre-emptive fiscal policy.

Key Quotes

“China’s near-term policy focus will be on boosting domestic demand and further opening up financial market.”

“We see chances for China to reduce the open market operations (OMO) or medium term lending facility (MLF) rates in Q4 amid the global trend of monetary policy easing.”