China’s central bank, the People’s Bank of China (PBoC), issued RMB 200 billion ($29.1 billion) of medium-term lending facility (MLF) loans on Tuesday, the bank said in a statement, reported Caixin.
The amount issued is 24 billion yuan ($3.5 billion) more than the combined RMB 176 billion ($25.6 billion) of MLF loans and reverse repos that matured the same day.
The PBoC will cut its reserve requirement for some small and midsize locally focused lenders. The move is expected to release RMB 280 billion ($40.7 billion) of long-term funds into the market.
It’s widely seen as a measure to support the economy as external uncertainties increase, especially as China-US trade tensions escalate, said Caixin.