China’s central bank calms markets after tariff turmoil

Financial Times , Jun 20, 2018
by Hudson Lockett in Hong Kong and Lucy Hornby in Beijing

China’s central bank acted to calm markets on Wednesday, a day after Washington’s threat to impose tariffs on another $200bn of Chinese goods caused turmoil in global bourses.

Yi Gang, governor of the People’s Bank of China, on Tuesday evening called for investors to “stay calm and rational” and pledged that the central bank would “ensure liquidity and reasonable stability” after the Shanghai benchmark had dropped to a near-two-year low.

The PBoC also injected a net Rmb40bn ($6.2bn) into China’s financial market on Wednesday morning, according to Reuters data. That followed a surprise intervention by the bank on Tuesday, when it injected Rmb200bn into the financial system and signalled that it planned to cut the amount of capital banks are required to hold.

To continue reading, click here