More stimulus measures seen as China boosts economy

SHANGHAI, Sept 17 (AFP) :  A reported $81 billion injection into China's major banks is probably the first of a series of fresh stimulus measures by Beijing to bolster its flagging economy, the world's second largest, analysts said Wednesday.
Online portal Sina late Tuesday quoted financial institutions as saying the People's Bank of China (PBoC), the central bank, would channel 500 billion yuan ($81 billion) into the country's five biggest banks, all state-owned. The PBoC has not confirmed the move.
"We believe Beijing (is) to introduce a slew of other easing and stimulus measures in coming weeks to re-boost confidence and re-stabilise growth," said Bank of America Merrill Lynch China economist Lu Ting.
Expected measures include "targeted" cuts in the amount of funds banks must place in reserve, speeding up development projects and quicker fiscal spending, he said in a research note.
Hong Kong's Hang Seng Index closed up 1.0 per cent on Wednesday on the report.
Mainland China's two stock markets were less impressed, with the benchmark Shanghai Composite Index finishing 0.49 per cent higher and the tech-heavy Shenzhen Composite Index gaining 0.66 per cent.
US stocks earlier reacted to the report on Tuesday with the Dow Jones Industrial Average rising 0.59 per cent to 17,131.97 points and the broad-based S&P 500 up 0.75 per cent at 1,998.98.