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Anonymous ID: 266602 Dec. 5, 2021, 7:40 p.m. No.15143685   🗄️.is đź”—kun   >>3821

China To Cut RRR "Within A Week" As Evergrande Braces For Imminent Default

 

Last Friday, just as markets were set to crater, during a meeting with IMF Managing Director Kristalina Georgieva, China's Premier Li hinted at a potential RRR cut in the near term to support the real economy. Li's comment comes amid sluggish activity growth - the economy struggled with downward pressures from property slowdown, the lingering drag from “dual controls” policy and power shortage, and multiple waves of local outbreaks of Covid-19.

 

Specifically, Premier Li commented that "China would maintain prudent macro policy, enhance policy effectiveness and pertinency, keep liquidity at reasonable and adequate levels, cut RRR when appropriate to increase support to the real economy and in particular SMEs".

 

In its take of Li's remarks, Goldman's Chinese economists said that they think PM Li’s comment implies "a targeted RRR cut is very likely in the near term," and they go on to note that "based on previous experiences, after Premier Li’s comment, PBOC usually announces the actual cut within a week." That said, the net liquidity impact may depend on whether the central bank rolls MLF in full on December 15th when RMB 950bn loans will mature. It also means that the cut will likely take place before the 15th.

 

Goldman also noted that despite PBOC Sun’s implicit comment on no RRR cut in mid October, the recent slump in economic growth and increased stresses in the labor market likely still concerned policymakers and in particular the State Council. Property indicators such as land sales continued to deteriorate, and despite PBOC’s guidance on accelerating credit extensions, TSF data has surprised to the downside in the recent months (on the other hand, China's credit impulse can't drop any further and is poised for a sharp bounce if only on base effects). The strict restrictive measures against Covid-19 also dragged down consumption activities and export growth might have also moderated in November.

 

Of course, the imminent RRR cut will hardly be a surprise as it comes one week after we reported that "Beijing Capitulates: Urges Local Govts To Unleash Debt Flood As Cities Begin Backstopping Property Developers"; as we discussed than, there have been a series of policy easing measures in recent weeks - especially in the property market - and high frequency indicators suggest incremental improvement in construction activities.

 

https://www.zerohedge.com/markets/china-cut-rrr-within-week-evergrande-braces-imminent-default

Anonymous ID: 266602 Dec. 5, 2021, 7:43 p.m. No.15143701   🗄️.is đź”—kun   >>3772 >>3821

What the child abuse royal commission didn’t fix. The ongoing agony of Andrew Coffey

 

If you assumed the ordeal for child sex abuse victims somehow ended with the royal commission, Andrew Coffey's story will show how far that is from the truth.

 

https://www.crikey.com.au/2021/12/06/andrew-coffey-shore-school-part-one/