According to BNP Partners, China’s central bank, the People’s Bank of China (PBoC) has moved to ease monetary policy further as the world’s second largest economy contends with an economic slowdown that threatens to see the country fall short of its official growth target for 2015.

The measure, which came into effect on Friday 20th November, will see the Bank reduce the overnight and 7-day rate it offers Chinese commercial lenders by 2.75% and 3.25% respectively in the hope that it will result in more money flowing into the economy.

“The PBoC’s cut interest rates six times in the last year as part of its bid to arrest the pace of the slowing in economic growth,” explained Gerald E. Powers, Chief Investment Officer at BNP Partners.

“It’s also reduced commercial banks’ reserve requirement ratio or ‘RRR’ and this latest measure could be aimed at pushing commercial banks to lend more to consumers as policymakers try to rebalance their economy towards greater reliance on domestic consumption,” he added.

China’s three decade-long economic expansion has relied primarily on cash from exports but with lackluster growth evident in its key export markets as well as rising costs from higher salaries, it must now plan for a “new normal” of single-digit growth.

“7% growth would be very, very welcome in the US or Europe right now but for China, it’s the equivalent of treading water,” said Powers.

BNP Partners has maintained its buy rating on a number of Chinese stocks and advises clients to buy on short term dips in price citing the likelihood of a turnaround in the economy within the next 6 months.

About BNP Partners:
At BNP Partners, they define effective wealth management as an overall strategy that seamlessly integrates their clients’ personal ROI (return-on-investment) aspirations with their investment management prowess.

Whilst today’s markets can often demonstrate the type of characteristics that have served to hamper the efforts of many traditional investment methodologies to secure the returns they once did, BNP Partners continue to secure exceptional returns for their esteemed clients utilizing a meticulously applied combination of those same traditional methods whilst diligently complementing them with new, pioneering techniques.

Contact BNP Partners:
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Huaihai Middle Rd.,
Shanghai, 200021
Phone: +85258083924
Email: [email protected]
Web: http://www.bnppartners.com