PBOC: Evergrande's risks to financial system controllable
|Finally, the Chinese central bank, the People Bank of China (PBOC) is out with its take on the persisting concerns over the indebted China Evergrande Group.
Key takeaways
“PBOC urges developers, shareholders, to fulfill debt obligations.”
“China asks banks to keep stable, orderly loans to real estate.”
“Monetary policy will be flexible, targeted and appropriate.”
“Will keep liquidity reasonably ample.”
“Will yuan basically stable, increase yuan flexibility.
“China's inflation under control.”
“Will stick to normal monetary policy.”
“Will provide reasonable credit support to coal-fired power companies and projects. “
“Liquidity in the banking system will be basically balanced in Q4, won't be big fluctuation.”
Market reaction
USD/CNY is attempting a bounce from daily lows of 6.4261, now trading at 6.4324, still down 0.09% on the day.
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