China's Central Bank plans to release additional cash from bank reserves to stimulate lending and reduce the effects of a recession in the stock markets. This will be the greatest reduction of reserve assets in the last three years, namely the release of more than one hundred and thirty billion dollars to re -expose the market. China's economy faces a decline caused by housing market problems, significant debts of local authorities and a decrease in world demand.
The main indices of CSI and Hang Seng have fallen to historical minimums, exceeding the forecasts of most analysts. Reduction of economic indicators is set by China before the task of combating deflation risks, and some experts believe that this year there will be more incentives. China's authorities have previously declared its intention to take additional measures to support the economy, but the effectiveness of political decisions is still limited, which puts some pressure on power to introduce additional incentives.
