Highlights: China: decrease in liquidity in banks, increase in stock markets. The Chinese central bank announced this Wednesday, January 24, a reduction in the reserve requirements imposed on the country's commercial banks. This ratio will be reduced by 50 basis points from February 5, which should make it possible to inject 128.5 billion euros – or 1,000 billion yuan – into the markets. Jack Ma, the founder of Alibaba, and Joseph Tsai, its financial director, have in turn come out of the woods. They have just purchased $200 million worth of shares in the group.

The Chinese central bank announced this Wednesday, January 24, a reduction in the reserve requirements imposed on the country's commercial banks. This ratio will be reduced by 50 basis points from…

China: decrease in liquidity in banks, increase in stock markets

The Chinese central bank announced this Wednesday, January 24, a reduction in the reserve requirements imposed on the country's commercial banks.

This ratio will be reduced by 50 basis points from February 5, which should make it possible to inject 128.5 billion euros – or 1,000 billion yuan – into the markets.

A bridge with a sign indicates stock market prices in the financial district of Shanghai, China, February 22, 2022. AFP - HECTOR RETAMAL

By: RFI Follow

With our correspondent in Beijing,

Stéphane Lagarde

Save the markets and improve investor confidence in the long term!

The appeal launched on Monday by Prime Minister Li Qiang during a meeting of the State Council and after a further decline in the Chinese stock markets was therefore followed through.

On January 22, the 3 main Chinese indices opened and closed down: - 2.68% for the Shanghai composite index, - 3.5% in Shenzhen and - 2.83% for the ChiNext index.

👉https://t.co/NktULpOmc9 pic.twitter.com/dmP0AFsH7w

— Stéphane Lagarde (@StephaneLagarde) January 24, 2024

This massive injection of liquidity should make it possible to support the economy and stabilize the capital markets, in a worrying bearish context for a second largest economy in the world already undermined by the real estate crisis and sluggish household consumption, or in any case, which has not taken off since the release of Covid-19.

According to

Bloomberg

, executives are seeking to mobilize a total of 2 trillion yuan, mainly from the

offshore

accounts of Chinese state-owned companies, as part of a stabilization fund to buy shares

through

the Hong Kong Stock Exchange. Kong.

This Wednesday, the private sector also took action.

Jack Ma, the founder of Alibaba, and Joseph Tsai, its financial director, have in turn come out of the woods.

They have just purchased $200 million worth of shares in the group, once again to offer a positive outlook to investors in a hitherto distraught Chinese stock market.

And the Hang Seng index rebounded upwards this Wednesday: + 3.56% at the close of the Hong Kong Stock Exchange.

China: decrease in liquidity in banks, increase in stock markets

China: decrease in liquidity in banks, increase in stock markets

Trends 24h

Latest