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Policymakers in China are taking steps to instill confidence in one of the world's worst performing stock markets – up to a limited success so far.
The stages, which pale with respect to The policies and restrictions imposed during previous stock market crises came after a $ 1.7 trillion swap had pushed the benchmark to a low level for two years. Shanghai's composite index swung between gains and losses on Monday after the central bank reduced the amount banks needed to build reserves, in a widely anticipated move.
The following is a list of support measures that the country's government, the central bank, the media and its companies took in June to mitigate external risks to economic growth and ensure liquidity provision in the financial system.
RRR cut
Chinese central bank lowered reserve ratio on Sunday, unlocking about 700 billion yuan ($ 108 billion) liquidity from July 5th. The movement, although welcomed by analysts, was considered insufficient to compensate for the concerns of a trade war, the slowing of growth and a campaign of deleveraging.
Sharing pledges
Business support
At least 101 Chinese companies on June 20 and 21 said major shareholders and executives plan to increase their holdings or have purchased shares, depending on the exchange deposits. This decision recalls the measures taken by companies to boost confidence during the stock market bubble in 2015.
Standing
When he saw how the stock markets reacted to escalating trade tensions with the United States, the governor of the People's Bank of China Yi Gang called on investors to remain calm and said the central bank will use monetary policy "globally" to counter external shocks. It is relatively rare for the PBOC to comment on turbulence in financial markets.
Headlines
After a $ 406 billion collapse of the domestic stock market on June 19, the largest one-day worthless loss in more than two years, the four Chinese public financial newspapers printed editorials telling investors to stay calm. "China A shares do not have the basis for sustained decline" was the first page title in the China Securities Journal.
Cash injection
The PBOC earlier this month increased its money injections into the financial system, as well as The widening of the range of guarantees allows banks to borrow money. It is also kept from immediately raising borrowing costs to follow a rate hike from the US Federal Reserve.
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