China’s Politburo reaffirms will lower RRR and implement forceful interest rate cuts

• Will ensure necessary fiscal spending
• Will step up force of counter-cyclical adjustments of fiscal, monetary policies
• Will strive to achieve full-year economic, social development targets
• To make efforts to stop falls in property market and to get it stabilised
• Will increase efforts to attract and stabilise investments

The main message here is that they are trying to amplify all of the measures announced during the week. And that they are throwing their support behind all of that, in trying to bolster investor confidence further. It’s still early in this latest attempt by Beijing, so we’ll see how much they can lift the market spirits come what may.

I mean, all of this is an important showing ahead of the National Day holidays next week. Perhaps the real test for Chinese markets will be to see how investors feel about all this after that.

This article was written by Justin Low at www.forexlive.com.