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China’s Central Bank Supports Economy Even As It Squeezes Leverage

PBOC won’t endanger government’s goal of keeping growth above 6.5%, economists say.

The People’s Bank of China has surprised many with its tolerance for market pain as it squeezes leverage in parts of the financial system.

But rest assured, China won’t clamp down so hard it endangers President Xi Jinping’s goal of keeping growth above 6.5%, according to economists from Morgan Stanley, Mizuho Securities and Oxford Economics.

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