China reduces the key interest rate to 1.4%

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China has said it lowers its interest rate and reduce the amount of money needed by the banks as stocks, offering support for the economy in a trade war with the United States.

China will reduce the bank reserves of the bank by 0.5 percentage and reduce several key interest rates to release RMB1TN ($ 138 billion) long -term liquidity into the banking system, said Mr. Gongsheng, Governor, Governor The Governor The People’s Bank of China.

Speaking at a press conference on Wednesday, together with officials of the two other financial regulation bodies, the Central Bank would reduce the benchmark of the seven-day rep-rap by 0.1 percentage points to 1.4 percent and reduce the deposit and other interest rates on loans.

Beijing rolled out the measures against the background of the bruises A trading war with the US This begins to get into the huge production sector of the country, and many export orders are canceled, and the factories begin to overcome the workers and reduce production.

On Wednesday, Beijing and Washington stated that they would hold their first trade talks, as US President Donald Trump has launched a trade war against China because both sides are looking for a way to reduce tariffs.

The trade war comes when China is already fighting with weak domestic demand, forcing Beijing in the following waves of weakening the monetary policy since last year.

The Lord said the last measures were related to the “uncertainty of the world economy, economic fragmentation and trade tensions that violated global industrial networks.”

Lord, said the gentleman.

Analysts say coordinated policy reports reflect Beijing’s desire to support their economy and increase the market trust before the US and China negotiations on trade.

“The terms of the package are closely linked to the US-Kita trade negotiations,” said Lin Song, the chief economist of China in Ing. “Now the profitable weakening measures helps to avoid the appearance of the reaction to the knee to the tariffs.”

PBOC also cut RRR for financial leasing companies and financial cars from 5 percent to zero, which would allow capital and improve their credit.

The cost of providing long -term loans from the program led by government for housing purchases will be reduced by 0.25 percentage to 2.6 percent, the Lord said to “maintain the rigid needs of housing residents and help stabilize the real estate market”.

Lee Junze, Director of the National Financial Regulatory Administration, a watchman about the financial sector, said China would launch new measures to support exporters “to stabilize their activities and help them expand their markets.”

He added that China would also open new financing mechanisms to support patients of real estate sectors and expand the pilot program to make more money from insurance companies to move to the stock market.

“We fully use the benefits of insurance funds as a patient, long-term capital and let him enter and stabilize the market in greater force,” Lee said.

Robin Sing, Chinese Economist Morgan Stanley, said the general policy remains “reactive and supplied”, and, as such, can only partially compensate for the shocks of the tariffs. But he said the packaging defeated “market expectations and showed a place to further relax as needed.”

“RRR CUT – One of the life steps to soften
Economic influence (caused by tariffs), ” – said that Wednesday said on Wednesday Wednesday Wednesday in the panel on Wednesday,” But stimulation measures should be mass this year to reach the 5 percent GDP goal. ”

The Hong Kong Hang Seng Hong Kong Index put forward 2.2 percent, but the profit was shortened later than the day. The CSI 300 Chaint index, closed 0.61 percent. The offshore reminby, which is freely traded, was equal to the day at the RMB7.22 per dollar.

Additional Wenjie Ding Report in Beijing