Shares of NetEase Inc. (NTES) surged 7.11% on Monday as China's central bank and regulators unveiled a sweeping package of stimulus measures aimed at reviving the country's faltering economy and beleaguered stock markets.
In a rare joint briefing, the People's Bank of China (PBOC) cut a key interest rate and lowered banks' reserve requirements to the lowest level since at least 2018. More significantly, the PBOC announced plans to provide at least 800 billion yuan ($113 billion) in liquidity support to the struggling stock market.
The stimulus measures included establishing swap and relending facilities for securities firms, funds, and insurers to purchase shares, as well as plans to set up a stock stabilization fund. The central bank said it could add another 500 billion yuan to the liquidity program in future phases.
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