In China, the first working week after the Lunar New Year holiday normally sets the tone for the rest of the year. It is obvious that this year is going to be a year of tighter monetary policies.
Chinese authorities have shown a strong will to tighten capital markets. The People's Bank of China PBoC, the nation's central bank, raised the reserve requirement ratio RRR by another 0.5%, with effect yesterday, which will erase more than Rmb300 billion worth of liquidity, analysts estimate.
It was the second RRR hike within a month and is targeted at slowing down credit growth -- the major source of income for Chinese banks,...
¬ Haymarket Media Limited. All rights reserved.
