Cutting the reserve ratio “showed China’s monetary policy has swung into easing mode as economic growth slows while inflation eases,” Reuters reported.
The China ETF is down 19% year to date on signs the economy and real estate market are losing steam.
Goldman Sachs this week reversed its recommendation on Chinese equities, which are underperforming, the Financial Times reported.
SPDR S&P 500
Full disclosure: Tom Lydon’s clients own SPY.