The People’s Bank of China’s cutting of interest rates and banks’ reserve requirement ratios on the weekend can help improve the Chinese economy, Financial Secretary John Tsang Chun-wah said.
The two-prong move is aimed at combating the adverse effects that the country is facing from of weakening exports, Tsang was quoted as saying by the Hong Kong Economic Journal in a report Monday.
A lackluster recovery in the US economy and an even more complicated condition in Europe amid the debt situation in Greece are factors that warrant the Chinese central bank’s move, he said.
Tsang is attending a ministerial meeting with 56 of his counterparts in Beijing, who will take part in the signing ceremony of the treaty setting up the Asian Infrastructure Investment Bank.
He said he expects the new China-led bank, of which Hong Kong is not directly a member, to start operating next year.
Tsang will meet with Jin Qi, head of the Silk Road infrastructure investment fund; Jin Liqun, the secretary general of the AIIB; and foreign ministry officials in charge of the country’s “one belt, one road” initiatives to explore how Hong Kong can play a role in the projects under that umbrella.
Translation by Vey Wong
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