QE With Chinese Characteristics: What It Will Look Like.

569 Views02 Jul 2024 13:28
The PBOC is embarking on large scale changes to the way in which it conducts monetary policy.  It will focus on using one short term policy rate and begin using Government bond trading (OMO).
What is covered in the Full Insight:
  • Introduction
  • Major Update to China’s Monetary Policy Tools
  • Plan to Trade Government Bonds
  • Impact of Open Market Operations vs. QE
  • Conclusion
Boomeranged on Fri, 5 Jul 2024 17:57
PBOC announced that it now has hundreds of billions of yuan worth of medium and long term bonds ready to borrow, after signing agreements with major financial institutions. The PBOC said it would borrow the bonds on an open-ended unsecured basis and sell them depending on the market conditions. This is the first step in the bank's Open Market Operations to better control rates and money supply.
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Full Insight
(Paid Plans Only, 5-minute read)
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David Mudd
Asian Hedge Fund Manager, Long Short Equity, Macro
EquitiesCross Asset StrategyThematic (Sector/Industry)