China Premier Li hints on easing
Chinese stock markets rose on Monday amid increased monetary easing expectations. Chinese Premier Li Keqiang said on May 23 the government will "fine-tune" policy when needed and solve problems such as tight funds for the real economy, especially for small companies.
“Investors’ risk appetite is rising while expectations about defaults are diminishing,” analysts at Guotai Junan Securities Co., Chinese third-biggest brokerage, say. “The central bank wants to maintain an appropriately loose environment to prevent explosion of regional or systematic risks. The central bank doesn’t want to see more companies collapse, so it has to allow borrowing costs to fall."