Liqian Ren

This back to what is PBOC’s pain threshold. Shanghai stock exchange index was close to 2600 low recently, index was 2900 when PBOc announced the policy and now close to 3200 What is possible PBOc buy intervention threshold?

Key is PBOC can guide them when to buy and the collateral could be lower quality stuff. So implicitly PBOC is printing money to indirectly buying stocks. But it’s ambiguous on whether unlimited. But that’s what it should be. You don’t want market to test you and call you!