La Central Bank of China announced plans to inject liquidity into Chinese financial markets 600 billion yuan, equal to almost 84 billion euros at current exchange rates. The operation will be carried out through medium-term loans, with the aim of guaranteeing the banking system "satisfactory" and "ample" levels of liquidity.
The central institute has also specified that interest rates will be cut to 2,75% and that small and medium-sized financial institutions will continue to be supported by Beijing. The Central Bank is also committed to providing additional funding to support key areas and weak links in the country's economy.
The new package of interventions follows the heavy falls suffered by the Dragon markets at the beginning of the year and comes on the day in which Beijing reported the data on economic growth in 2015 (+6,9%), which turned out to be the lowest since a quarter of a century.
