China Bails Out

President Xi’s First Ever Visit to People’s Bank (PBoC) is Hugely Significant

Watershed moments in World financial markets keep coming. Could China be embarking on expansionary New Deal-like policies? Consider how the Chinese media headlined President Xi Jinping’s recent (24/10/2023) surprise visit to the People’s Bank (PBoC) HQ as his ‘first ever’. According to the data, Xi’s visit endorses a major monetary relaxation. In the four months from June the PBoC injected a sizeable RMB3.3 trillion (US$450 billion) into Chinese money markets and advanced a further RMB 2.1 trillion of medium-term loans. On top, in the past week alone they have injected another RMB2 trillion of new cash. See chart below.