Let’s begin with a quick wrap of last week’s policy measures, from BofA:
LPR cut:1yr/5yrLPR was cut by 5bp/15bp to 3.65%/4.30%on Aug 22nd vs 10bp of MLF cut last week. The asymmetric cuts showed support to the property market while refrained from sending too much easing signal amid inflation and RMB depreciation concern.
•PBOC credit analysis meeting: PBOC asked state banks to maintain stable loan growth, increase loan supports to real economy, especially SMEs, green finance and technology & innovation, satisfy developers’ reasonable financing demand, and increase supports to platform economy, while asked policy banks to increase supports to new infrastructure.