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China banking index opens up 2.6 pct on quantitative easing speculation
March 12, 2015 / 1:46 AM / in 2 years

China banking index opens up 2.6 pct on quantitative easing speculation

SHANGHAI, March 12 (Reuters) - China's CSI300 banking index opened up 2.6 percent on Thursday as media speculated that a 1 trillion yuan ($159.70 billion) debt swap between local governments and the Ministry of Finance would be handled by direct bond purchases, seen as a form of more aggressive quantitative easing.

Other major indexes also opened up strongly, with the main CSI300 index and the Shanghai Composite Index both up around 1 percent in morning trade.

A central bank adviser told Reuters on Thursday that China plans no further support for the property market but will ease interest rates and reserve requirements again if inflation falls below 1 percent.

Economists believe the central bank is embarking on its most aggressive easing campaign since the global financial crisis as economic growth this year is seen cooling to a quarter-century low.

$1 = 6.2617 Chinese yuan Reporting by Pete Sweeney; Editing by Kim Coghill

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