The Chinese central bank has taken extensive stimulus measures in response to the ongoing economic weakness in the People's Republic. These are intended to revive the economy and provide the financial markets with new liquidity. Following the announcements, shares of Chinese companies on Wall Street responded with significant price gains.

A key measure concerns the reduction of interest rates on existing real estate loans, as Pan Gongsheng, the governor of the Chinese central bank, stated in Beijing. Additionally, the minimum down payment for a second home loan will be reduced from 25 percent to 15 percent to stimulate the real estate market.

Furthermore, the minimum rate for banks' cash reserves will be reduced by 0.5 percentage points.

The reaction on the US stock markets was not long in coming. In particular, Chinese companies traded in the US via ADRs (American Depositary Receipts) posted significant gains. Alibaba's stock rose 7.35 percent to $96.72 on the NYSE. JD.com gained 11.79 percent on NASDAQ, reaching $33.27. The electric car manufacturer NIO also impressed with an increase of 10.18 percent to $5.86 on the NYSE.