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Stock impact report

Chinese-Style Quantitative Easing Eyed for Property Fix [BNN Bloomberg (Canada)]

Nomura Holdings Inc ADR American Depositary Shares (NMR) 
US:NYSE Investor Relations: nomuraholdings.com/investor
Company Research Source: BNN Bloomberg
Bloomberg News has reported that the People's Bank of China may provide at least 1 trillion yuan ($140 billion) in low-cost funding to construction projects via so-called Pledged Supplemental Lending. Under that program, the central bank has provided cheap long-term cash to policy banks (by accepting their loans as collateral) to fund lending to the housing and infrastructure sectors. Unlike QE programs undertaken by the Federal Reserve and others that involve large-scale bond buying to push down yields, China's version is more targeted. The PSL was used between 2014 and 2019 to help fund a home building spree, leading some economists to describe it as Chinese-style QE because of the resulting creation of money and expansion of the central bank's balance sheet. “After so much policy relaxation, stimulus and relief, the property sector still hasn't shown any obvious improvement. All traditional tools have been used, so what's left are only unconventional tools,” said Lu Ting, chie Show less Read more
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