China will start picking up shortly now that some new policies...

China will start picking up shortly now that some new policies are implemented. I've managed to pick some JMS up at 17.5c and still have an open order at the top of the 17.5c list although I doubt I'll get them, but can't complain I picked up another 400,000 JMS when I sold E25 on a high. At least JMS makes a profit.

China – PBoC releases $70bn to boost economy though 25bp cut in reserve requirement ratio

• The move was expected after the State Council called for more efforts to help the economic recovery and suggested that monetary tools including a RRR cut can be used.
• The decision is estimated to release CNY 500bn (US$70bn) of liquidity into the economy.

China - Analysts see light at the end of the tunnel for China’s property developer sector as Beijing boosts liquidity

• Chinese lenders have agreed to inject $162bn (c.1% of China’s GDP) worth of credit to boost liquidity into the property market.
• State banks including the ICBC and Postal Savings Bank of China announced this week plans to support a number of major developers.
• Country Garden has received a $7bn loan from Postal Savings, sending its share price up over 20% this week.
• However, the major developer’s 2024 bonds are still trading at 41 cents on the dollar, although this touched lows of 14 earlier in November.
• Standard and Poor’s note this recent round of interventions may provide the turning point in the sector.
• Although stimulus attempts have been made throughout the year, this week marks the most significant move by Beijing, with the uncharacteristic disclosure of specific loan details seen by analysts as a move to reassure the market first and foremost.
• Liquidity has been starved from the sector by Xi Jinping’s policies to limit leverage following decades of property price appreciation to unsustainable levels and subsequent inflated debt loads.
• Whilst the worst may be behind the sector, growth rates seen throughout the 2010s in the property market are unexpected, with floorspace still at levels well beyond the needs of the Chinese population.