China’s central bank, the People’s Bank of China (PBOC) on Saturday announced plans to boost financial support for technological innovation and stimulate consumption to boost economic growth.

The bank also hinted at the use of new tools to provide liquidity to the stock markets and confirmed its commitment to lower interest rates and reserve requirements for banks when necessary.

• The PBOC aims to sustain growth through measures that include providing liquidity and institutional protection for the capital market.
• Despite signs of recovery following stimulus measures introduced since September, growth remains under pressure from risks such as a potential trade war between the US and China.
• The State Administration of Foreign Exchange (SAFE) has announced plans to encourage high-quality foreign investment in China’s technology sector. SAFE will improve the management of funds of Chinese companies traded abroad and improve regulations for the management of capital of multinational corporations.

On Friday, we had other statements from the Bank in a similar way:

USD/CNH update, the yuan is still under pressure from the super-strong USD, but there is a but: