China steps up efforts to support its slowing economy

London (CNN Business)China is taking new steps to encourage bank lending and stimulate the country’s flagging economy.

The central bank said Friday it would cut its reserve requirement ratio by 1 percentage point over the next month. The reductions will be made in two stages on January 15 and January 25.
Together, the new measures should inject about 800 billion yuan ($116 billion) into the world’s second largest economy as growth slows and a trade war with the United States takes its toll.
    Economists said the move was partly about managing the amount of money in circulation ahead of Chinese New Year, when cash is often exchanged as gifts.
    But Capital Economics said the policy change is “also intended to provide support to the economy and will be reinforced with further easing soon.”
    “Given the pressures the economy is facing though, it could still be months before growth stabilizes,” noted analysts at the research firm.
    After decades of sharp expansion, the Chinese economy is cooling. Growth in 2018 is set to be the weakest since 1990, and 2019 looks even worse.
    China is feeling the effects of a darkening trade outlook and government attempts to rein in risky lending after a rapid rise in debt levels.
    Fears about China’s economic health have already rattled financial markets. The issue became a major focus for investors this week when Apple (AAPL) warned that it would sell fewer iPhones because of the slowdown.
    What remains uncertain is the severity of the slowdown and how far the Chinese government will go in trying to soften its impact. One big wild card is how the trade war between the United States and China will play out in 2019. Beijing said Friday that talks aimed at ending the dispute would resume next week.
      Analysts at JPMorgan Chase said that the central bank’s action suggests that “the Chinese government is tilting toward a growth-oriented stance.”
      The analysts said the central bank may cut the reserve requirement ratio further, and pump more money into the economy in the form of infrastructure investment and tax cuts.

      Original Article : HERE ; This post was curated & posted using : RealSpecific


      Recommended PRODUCTS
    • Take Positive Thinking To The Next Level And Change Your Life.
    • An easy 3 step program that will give you the insight you need to transform your life and prosper.
    • Discover how you can easily talk to, and attract hot women.
    • Discover The Amazing Secrets To A Ten Step Trading Strategy Trader Uses To Profit From The Stock Market
    • Are you frustrated that your expensive karoke player does not let you play.
    • Three Simple Steps To Achieve Your Goals And Objectives, And Stop Procrastinating.
    • Speed Up Your PC Performance Get the PCFixKit Windows registry cleaner.
    • Become Secure, Confident And Truly Charismatic Around Them - In 3 Steps.
    • Frustrated With Woodworking Plans Learn Building Secrets With Ez Guide.
    • Change Your Mind, Change Your Life Influence Your Mind and Others.
    • Discover The Avant-garde System That Will Bring 2,228 Weekly By Following 4 Simple Steps.
    • Learn How To Set Up Your Fraud Alerts And Protect Yourself From Id Theft
    • Reveals 1 Unusual Tip To Eliminate Excessive Sweating Forever In 48 Hours
    • Discover How to Cure Your Insomnia in 6 Simple Steps and Start Sleeping for 8 hours by 3 days.
    • Clickbank Ads
       
       


      RELATED PRODUCTS
    • Speed Up Your PC Performance Get the PCFixKit Windows registry cleaner.
    • Take Positive Thinking To The Next Level And Change Your Life.
    • Are you frustrated that your expensive karoke player does not let you play.
    • Discover The Amazing Secrets To A Ten Step Trading Strategy Trader Uses To Profit From The Stock Market
    • An easy 3 step program that will give you the insight you need to transform your life and prosper.
    • Discover how you can easily talk to, and attract hot women.
    • Three Simple Steps To Achieve Your Goals And Objectives, And Stop Procrastinating.
    • Build Backlinks Automatically Two Easy Steps
    • Get The Secrets To Get Your Ex Back Before They're Gone For Good And Develop A Fulfilling Relationship
    • A step by step guide to start your online business and learn to become a concert promoter.
    • Get This Incredible Lava Stone 'Manifestation Bracelet' For FREE
    • The Cookbooks, Designed By Chef Bobby And Support Keto A Better Way
    • Discover how you can unlock your mind's to achieve a photographic memory.
    • Be Cold Free In Just 3 Simple And Easy Steps 100 Natural And Drug Free
    • How easily you can have a disney world vacation for a fraction of what others pay.
    • Every Business Need Cash To Expand. Find Out How
    • Clickbank Ads
       

      Thank you for taking the time to read our article.

      If you enjoyed our content, we'd really appreciate some "love" with a share or two.

      And ... Don't forget to have fun!

      Recommended

      Printly 2.0

      How to create and sell digital printables.

      Video Magic Web Based Player

      Set Your Videos In Beautiful High Definition Surroundings And Engage With Your Viewers With Our Advanced Features! All Bundled Up Into The Most User Friendly Player Builder On The Web!

      WP SEO Gold

      This JVzoo-exclusive all in one SEO software gets you #1 rankings with ease

      Leave a Reply