“This move is a dovish surprise given investors largely expected the PBOC to wait for the Fed and/or the July Politburo meeting,” Goldman Sachs analysts said in a note. “In our view, the policy rate cut echoed the unusual comments on the near-term growth headwinds in the communique for the Third Plenum.”
The Hang Seng Index had slumped almost 5 per cent last week, posting its biggest weekly fall in almost two months after the third plenary session for the Communist Party’s Central Committee failed to impress investors, even as it outlined long-term development objectives such as tech innovation which were widely expected by the…
