The Chinese central bank has today pumped the record amount of the equivalent of just under 73 billion euros in the financial sector. In view of the cooling economy, liquidity problems with banks should be prevented.
The central bank said that the measures were intended to ensure that there were substantial financing possibilities for the economy. Because the liquidity of the banking industry is deteriorating.
„Business needs help“
Recent economic data has alarmed the Beijing government. Measures to boost the economy have already been announced, such as tax cuts for smaller companies and industrial companies. The background of the weak data is also the trade dispute with the US, which is increasingly affecting. In December, Chinese exports shrank by 4.4 percent year-on-year, the highest rate in two years.
Economist Trinh Nguyen of investment bank Natixis said, „The message is clear: the economy needs help.“ Although the authorities in the People’s Republic are constantly pushing banks to lend more, they are often reluctant to do so. They are afraid of too many problem loans.
