Goldman: PBOC Actions Were To Boost Liquidity

Mark Melin

Published onJanuary 24, 2017

Updated on May 14, 2021

Don’t be deceived by signals coming out of the People’s Bank of China. When the media reported the PBOC had approved a 100 basis point cut in the bank’s Reserve Requirement Ratio (RRR), that was not an easing signal, Goldman Sachs analysis surmises. The Goldman analysis comes nearly one month after they proclaimed not to be worried about a China credit crisis. One month later, however, they noted Chinese defaults are rising rapidly.

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Chinese Debt Called “Fatal” By Chinese Think Tank

Goldman: PBOC Actions Were To Boost Liquidity — Source: Pixabay

PBOC reduction in Chinese big bank reserve ratios resulted more...

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Mark Melin

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.