New lending flows as China says it will never surrender to external pressure
BEIJING - The People's Bank of China has issued RMB 200 billion (US$ 29 billion) of medium-term lending facility loans, according to a Caixin report.
The bank will also cut its reserve requirement (the amount of cash banks must keep in reserve) for some small and midsize locally-focussed lenders, the report says, adding that the move is expected to unleash RMB 280 billion of long-term funds into the market.
"It is widely seen as a measure to support the economy as external uncertainties increase,"the report says.
Meanwhile, China's State newsagency, Xinhua, is quoting Foreign Ministry spokesperson Geng Shuang as saying China will never surrender to external pressure, and has the resolve and capability to defend its legitimate rights and interests.
"China doesn't want a trade war, but we are not afraid of fighting one. If someone brings the war to our doorstep, we will fight to the end," he is quoted as saying.
Geng is also reported as saying that China is by no means the party that pulled back and broke its promise. www.webershandwick.cn (ATI).