People’s Bank of China, or PBoC, would support the stable development of the stock market and actively assist China Securities Finance Co. Ltd. to provide liquidity, a central bank spokesman said in a statement.
PBoC will help the financial institution through borrowing and issuing financial bonds, mortgage financing, loan refinancing and other means to get sufficient liquidity.
In addition, the bank would pay close attention to market trends, continue to assist the institution to maintain stability in the stock market through multiple channels and guard against systemic and regional financial risk.
“Structural changes in China’s economy are transforming its economic relationship with the rest of the world, as domestic demand shifts from investment to consumption, outbound tourism surges and the private sector rather than the People’s Bank directs flows of capital overseas,” said Mark Williams, an economist at Capital Economics.
The material has been provided by InstaForex Company – www.instaforex.com