Late Friday the People’s Bank of China loosened financial conditions further by cutting the ratio of reserve requirements commercial banks are obliged to hold. From today these will be 50 basis points lower than they were last Monday and some qualified banks will see their ratio drop by 100 basis points. Data published early this morning show that exports from the Chinese mainland in August fell by 1 per cent, well below analysts’ expectations, with trade to the US hit especially hard. Meanwhile imports fell by 5.6 per cent so that the trade surplus fell to $34 billion from $44 billion in July.
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