REUTERS | December 6, 202111:43 AM WIB Last Updated a day ago
SHANGHAI, Dec 6 (Reuters) – China stocks rose on Monday as Premier Li Keqiang said reserve requirement ratios will be cut in a timely way, while real estate developers led gains after local government summoned the chairman of debt-ridden China Evergrande Group.
** China will “cut reserve requirement ratios in a timely way to step up support for the real economy, especially small and micro firms, to ensure stable and healthy economic operations,” state media on Friday quoted Premier Li Keqiang as saying. read more
** “The RRR cut, if it materializes, will add to credit supply and support Beijing’s efforts to stem the growth slowdown,” said Nomura in a note.
** China’s Guangdong province on Friday summoned the chairman of China Evergrande Group (3333.HK) after the developer said there was “no guarantee” it would have enough funds to meet debt repayments. read more
** China authorities said Evergrande’s problem was mainly caused by its own mismanagement and break-neck expansion, and its issue would not affect the industry’s normal operations.
** “The confident tone of regulators was aimed to calm markets, but might also deliver the message that Beijing will keep most of its property curbs in place for a longer while,” Nomura said.
** The U.S. said on Thursday Chinese companies listing on U.S. stock exchanges must disclose whether they are owned or controlled by a government entity, and provide evidence of their auditing inspections. read more
** Nomura analysts said these amendments may reduce capital inflow into China’s tech and internet sectors.