(Reuters) China’s Central Bank stated that it was maintaining its monetary policy and that there was no shortage in the base money has cooled near-term market expectations.
The statement by PBOC saw the yuan strengthen against the dollar while the stocks of most blue-chip companies dropped.
PBOC’s vice-governor Pan Gongsheng said that the government was not considering flood-like stimulus.
Analysts have lowered the probability of expected RRR cut in September to October to 50% from the initial 70%, following the statement.
The Central Bank stated on September 1 that it will raise the annual re-lending quotas by 300 billion yuan or $46 billion to assist small businesses.
Customs data published on Tuesday showed an increase in China’s exports in August driven by strong global demand. Economists foresee a slow growth in the coming months.
CSI 300 is down -0.41%, USDCNY is down -0.13%.
