Chinese equity markets have reopened after the wee-long holiday and are trading lower:
China's equity markets reopen after a week's holiday - are trading a good bit lower
The falls come despite the RRR cut over the weekend … but:
- Cut does not come into effect unto Oct. 15
- Company tax payments come due this month and the (approx. 750bn yuan impact of the RRR cut) cut may not be nearly enough to cover
- There were no OMOs today, and with RRs maturing that drains 100bn yuan from the banking system right there
All this suggests there should be further easing to come from the PBOC, and that's that's even before taking into account the desire to pump some stimulus in to counteract the negatives of trade tariffs
