PBOC 'poised to pull QE trigger' as economy stalls

Central bank may buy local government bonds as a way to get more money into the markets, reports Zheng Yangpeng.

Financial markets on the Chinese mainland are abuzz with speculation that the central bank will inject more liquidity into the economy by unconventional means that could amount to a version of "quantitative easing".

The People's Bank of China may adopt new policies that could include direct purchases of local government bonds from the market, a report by Market News International said on Monday. The Wall Street Journal also reported that the government may let banks use these notes as collateral for loans from the central bank.