Investors reacted positively to news that Peoples Bank of China plans to increase support for the agricultural sector and small businesses. In addition is planned the financing of the state program for the demolition of slums and construction in their place the affordable housing.
At the same time, the People's Bank of China said on toughening control over interbank lending, which should reduce lending rates in the country. We recall that investors around the world fear the crisis in the construction sector of China which shows a significant decrease and may lead to a further drop in growth in the world's second largest economy.
We are positive about monetary policy in China, but keep a long-term negative outlook on the Chinese stock market.
Wish you the profits!
FXFINPRO Capital Analytical department.