China central bank bears with market pain in leverage squeeze

Beijing

THE People's Bank of China (PBOC) 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 per cent, according to economists from Morgan Stanley, Mizuho Securities and Oxford Economics.

"Some in global markets are concerned that China's monetary tightening risks nipping in the bud the current, still fragile, global recov…