- China's state media say that the government will lower the capital ratio requirements for some infrastructure projects.
- AUD and Copper could be affected as the full details push through.
There have been some reports by the Chinese state media that the government are planning to lower the capital ratio requirements for some infrastructure projects.
It has also been reported that the cabinet will lower minimum capital investment ratios for ports, shipping infrastructure projects to 20% from 25%.
There are not too many details about which projects will be included in this scheme but for the likes of base metals and the Australian dollar, this could be significant.
As of yet both assets have not reacted as the story is not to clear and we need more information. This is not the only measure the Chinese have taken to boost industrial and economic growth. The PBoC have but the RRR a few times and there have also been many liquidity injections from Chinese officials.
Today both AUD and Copper have struggled after Trump failed to provide any meaningful updates on the trade negotiations with China in Tuesday's speech at the New York Economic Club. This news may not have an immediate impact but it shows some more good intention from the Chinese to boost the economy.
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