The Central Bank has also set an increasing limit for each institution’s foreign exchange reserves to try to manage the reserve surplus recorded since 2020, in dollar terms reserves have grown by 2.9 percent. South Korea and Taiwan recorded 10.6% and 13.2% respectively.
More financial turmoil is looming, moreover, at the end of the month the trading ban on a total of 141 billion dollars shares will be lifted, this too is a measure adopted to cool the markets. Not to mention the boomerang effect of inflation, another sworn enemy of the Chinese government.
It is holding back the real economy, partly to services as well
On the real economy front, services reported another strong performance in May. Commercial activity and new orders both increased, although expansion rates have softened since April, as businesses continued to add their staffing levels.
However, the latest survey conducted by Caixin showed a sharp rise in input costs, which in turn led to a steeper rise in final prices.
The Caixin SME Services Sector Index, reported by IHS Markit, fell to 55.1 in May, from 56.3 in April, but remained firmly above the neutral level of 50.0 to signal a marked increase in value. ‘activities.