China’s “national team”= U.S. PPT

FROM IFR news-

China authorities made it clearer they will add stimulus in many different manners. Even to the extent that China’s “National Team”, the equivalent of the US “plunge protection team”, stands by to buy equities. And market players say so far, China’s “National Team” has kept their powder dry.
The FT reported that “It was not until after market close that state media confirmed the cavalry was prepped and ready — specifically, a group of Chinese insurers with Rmb100bn ($14.3bn) ready to plough into the stock market if necessary.” The FT went on to quote analyst Fraser Howie “One of the key things about state support is that everybody believes it’s going to happen, so it’s part placebo, partly real.”

The PBOC cut 10 bps off the offered rates by on its renminbi 1.2 tn reverse repo issuance. And it looks likely the LPR will be lowered February 20 for further support of the economy. In the past two days, the PBOC has injected renminbi 1.7 tn through open market operations. An official said “We have policy reserves and will step up policy support for the economy. The most urgent task is to put the virus outbreak under control.”

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