First he took a sip of tea to gather his composure. Then Chinese central banker Pan Gongsheng unleashed one of the country’s most daring policy campaigns in decades. In what amounts to a massive adrenaline shot for an economy on the cusp of a deflationary spiral, the governor of the People’s Bank of China and other top financial officials unveiled a series of easing measures that market watchers had wanted for weeks at a rare, high-level news conference on Tuesday in Beijing.
They include interest rate cuts, more cash for banks, bigger incentives to buy homes and plans to consider a stock stabilization fund. Markets on the mainland and in Hong Kong soared, with the CSI 300 Index — a benchmark of onshore Chinese stocks — posting its biggest gain since July 2020. U.
S. equity futures advanced and European stocks climbed on the back of sectors with heavy exposure to China, including manufacturers of automobiles and luxury goods..