China Hints At More Easy Money

Bloomberg: China sends a stimulus signal

The People’s Bank of China tweaked the description of its monetary policy stance overnight, defining current policy as “prudent with a slight easing bias.” While the change may seem small, it is being viewed as a clear signal to markets when coupled with comments from Governor Zhou Xiaochuan in which he said: “China still has some monetary policy space and multiple policy instruments to address possible downside risks.” The Shanghai Composite Index rallied 1 percent, regaining some stability following Thursday’s plunge of over 6 percent.