PBOC senior adviser Sheng Songcheng noted that the current situation calls for continuing to reduce the reserve ratio of banks. His most prominent comments were as follows:
- PBOC is likely to cut the reserve ratio for some banks and provide MLFs.
- China's economic growth is expected to accelerate in the second half of the year compared to the same period last year as effects of deleveraging decrease.
- The gap between M2 money supply and aggregate financing is expected to narrow.
