(Bloomberg) -- China unveiled more measures to boost its stuttering economy in a rare briefing by the head of the central bank, along with the securities and financial regulators. Here are the key takeaways from the roughly 90-minute-long event:
- People’s Bank of China Governor Pan Gongsheng announced a cut in the reserve requirement ratio, seven-day policy rate and existing mortgage rates, in a bid to both boost lending and reduce the existing loan burdens. He said further RRR cuts are possible
- Pan also announced at least 500 billion yuan ($71 billion) of liquidity support for stocks. There will be a swap facility allowing securities, funds and insurance companies to tap the PBOC to buy stocks. Pan also told reporters that authorities are studying setting up a stock stabilization fund, without details
- China Securities Regulatory Commission Chairman Wu Qing said new measures to encourage mergers and acquisitions will be unveiled soon, and underscored the CSRC’s work to improve regulatory oversight. National Financial Regulatory Administration chief Li Yunze said China will add tier-one capital to six major commercial banks
- Analysts welcomed the stimulus, but cautioned that it doesn’t represent the bazooka that many see as needed to get China’s consumers spending up again. While the lower mortgage rates will help homeowners, it may not be enough to revive the housing market
- Stocks in Hong Kong and China rose on the announcements, while the 10-year yield on Chinese bonds fell to 2% for the first time on record. The offshore yuan was little changed
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