China seeks to reassure stock markets with rate cut and looser lending
by Phillip Inman economics correspondent from on (#JD6P)
The People's Bank of China reduces the one-year lending rate in a signal of readiness to head off a repeat of June's stock market crash
China has sought to calm its panic-stricken stock markets by cutting interest rates and loosening constraints on bank lending after a second day of plunging share prices.
The People's Bank of China (PBoC) reduced the one-year lending rate to 4.6% in a clear signal that it was prepared to head off a repeat of the stock market crash that hit the country in June. The benchmark Shanghai Composite fell by 7.6% on Tuesday, bringing its loss in the last two days to more than 15%.
Related: China opts for measured response to days of stock market panic
Continue reading...