There was a rumor in the morning that the central bank of China might end up buying debt and that the “Chinese version of QE” is about to begin. Rumors spurred a sharp rise in the Hong Kong A stock market for a while. However, there was another sharp correction after 2 o'clock. According to reports, Morgan Stanley released the latest report stating that quantitative easing by the central bank of China will not occur. Morgan Stanley believes that this is only to improve open market operation mechanisms, from using central bank notes, reverse repurchases, and loan facilities (LFs) to increasingly using treasury bond transactions to control financial conditions. This is standard practice for central banks around the world.