PBoC cuts MLF rate

This MLF cut is more or less in line with what the PBoC has been signaling for much of the past year: the central bank will offer supportive monetary policy at the margins, targeted to meet the needs of specific sectors or the needs of a specific time period – as opposed to large-scale, indefinite stimulus…
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PBoC issues draft measures to support RMB-denominated cross-border ecommerce

China’s cross-border ecommerce has grown massively in recent years – official data show that from 2016-2019 the compound annual growth rate was 55.1% and in 2020 trade amounted to 1.69 trillion yuan, an increase of 31% on 2019. But that’s still a drop in the ocean compared with traditional cross-border trade so it still needs supportive policies to cut red tape and make the settlement of trade easier…
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Central bank launches digital yuan app on domestic app stores

The public are clearly curious about the central bank digital currency, but the real question is whether that interest will stick. Despite all the media hype, we still haven’t seen evidence that the e-CNY offers a strong incentive for consumers to switch away from WeChat Pay and Alipay, which together account for more than 95% of China’s mobile payment market…
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