Chinese Stocks Rally After PBOC Says Correction “Almost Over”

Chinese markets are on the move again and some bankers are saying that the country’s stock market correction is “almost over.”

Speaking to the annual meeting of the International Monetary Fund (IMF) and World Bank in Peru, Yi Gang, deputy governor of the People’s Bank of China (PBOC) pointed out that the corrections implemented by the equity markets have had only a limited impact on the world’s second-biggest economy. Yi attributed this to a series of measures taken by to avoid systemic risks.

More Stimulus Expected

The PBOC also announced its intention to expand a pilot scheme that allows banks to borrow money using high quality credit assets as collateral. Investors are hoping for the implementation of additional stimulus measures when Beijing meets later this month to discuss the 13th five-year plan.

China’s Finance Minister Lou Jiwei, who also attended the meeting in Lima, told listeners that given the global economic situation, now is not the right time for the United States to raise interest rates. Lou blamed developed economies for the global economic condition citing slow recoveries that were not creating enough demand.

According to Jiwei, “The United States isn’t at the point of raising interest rates yet and under its global responsibilities it can’t raise rates ” and described the slowdown in China’s economy as a healthy process which needs to be managed carefully.

China’s equity markets hit a high at 2:30pm local time with the Shanghai Composite rallying 3.4 percent Earlier in the session, it surged more than 4 percent to its peak since August 24.