Bloomberg News April 22, 2018, 4:30 PM EDT Investors who pushed up Chinese bank shares last week on news of lower reserve requirements may have been celebrating too soon.The subtext to Tuesday’s move is an effort to prepare the banks for a painful new phase in China’s campaign to reduce financial-sector risks, as regulators free up deposit rates and accelerate their crackdown on the nation’s $16 trillion shadow banking sector.“China is gearing up to crack a hard nut with deleveraging and financial reforms, and the central bank is offering some coordinated policies to ensure it will be a smooth transition,” said Xia Le, chief Asia economist at Banco Bilbao Vizcaya Argentaria SA in Hong Kong.The People’s Bank of China’s decision to free up more liquidity for banks by slashing reserve ratio requirements, at a time when funding conditions are plentiful, shows the central bank is trying to insulate lenders for the next phase of reform, said Ming Ming, head of fixed-income research at Citic Securities Co.A key element of that reform process is a plan to give banks greater freedom to set interest rates, flagged by PBOC Governor Yi Gang at the Boao forum earlier this month. That will help… Read full this story
- Equilibrium/ Sustainability — Presented by NextEra Energy — Clean power repurposes dirty power
- Why Russia is finally embracing virtual currencies. Hint: It rhymes with honey wandering
- Cryptocurrency LIVE: BTC, ETH and DOGE prices rebound after 'dormant wallet wakes up'
- Yodel manager stole £24,000 worth of phones to pay off loan shark
- Collaboration for “a legendary and mystical river” sees vibrant flows, rejuvenation on the Dolores
- Tokyo 2020 Olympic Games full schedule: dates, times and key events to watch
- When ‘Indecent Advances’ Was an Excuse to Murder Gay Men
China Is Bolstering Lenders Before New Assault on Shadow Banking have 287 words, post on www.bloomberg.com at April 22, 2018. This is cached page on Trend . If you want remove this page, please contact us.