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Will Copper Prices Take Impetus from PBOC’s Targeted Easing? SMM Interviews

iconOct 20, 2014 10:38
Source:SMM
The People’s Bank of China is reportedly planning to inject 200 billion yuan ($32.6 billion) into 20 shareholding banks, as concerns mounted that China may miss its 7.5% growth target this year.

SHANGHAI, Oct. 20 (SMM) – The People’s Bank of China is reportedly planning to inject 200 billion yuan ($32.6 billion) into 20 shareholding banks, as concerns mounted that China may miss its 7.5% growth target this year.

Will copper prices gain momentum from this targeted easing measure? Chinese analysts seem to be less than optimistic.

“Although the measure will help boost liquidity and lend some support to the market, any rebound in copper prices will be ephemeral as oversupply pressure still exists,” analyst from CITIC Futures told SMM in a recent interview.

Analyst from Shanghai CIFCO Futures believes the implication of the liquidity injection will be limited, as market had expected a “blanket interest rate cut” earlier.

“Despite a brief rally last Friday, copper prices may still be weighed down given worries about a glut in the market,” the analyst added.

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