Amid speculation that the Chinese economy continues to experience an accelerating pace of capital outflows, policymakers stepped in with additional measures to ease financing conditions. The move caught markets by surprise amid one of the worst losing streaks on record for Chinese equities. In conjunction with the rate cute and reduction of the reserve ratio requirement for banks, the People’s Bank of China also devalued the Yuan further overnight to the lowest level since 2011, fixing the reference rate to the dollar at 6.4043. China has been selling treasuries at a record pace to bolster recent policy moves, reportedly selling $100 billion worth of exposure to US Treasuries over the past two weeks alone to maintain FX targets in the Yuan. The Shanghai Composite has managed to stage a modest bounce during today’s session, gaining just over 1% in trading after falling more than 15% in the prior two sessions.