Yi Gang, governor of the central bank, told media that the PBoC would implement a neutral monetary policy and would ensure adequate liquidity in the banking system.
“It’s not common for the regulators to all speak out like this, but today China released its GDP figures and they were not in line with expectations,” Jackit Wong, a markets researcher at MUFG, told the Financial Times.
Given the sharp pullback in Chinese markets and the potential support from regulators, some traders are betting on a turnaround in this emerging market.
“We think that China is a medium-term bullish story and we would keep Chinese assets in portfolios,” Sophie Huynh, cross-asset strategist at Société Générale, told the Wall Street Journal.
For more information on Chinese markets, visit our China category.