The People’s Bank of China (PBOC) reduced repo rates by 20 bps, signaling similar cuts to lending, deposit rates, and existing mortgages. The PBOC also introduced several programs to facilitate stock purchases to prop up equity markets. These measures and a 50 bps cut to reserve requirements for banks were done to stabilize housing markets and encourage bank lending to spur economic growth. The market reacted with a resounding sigh of relief, and Chinese stocks surged to their biggest weekly gain since 2008, rising 16.3%.

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