China takes some bold steps, the big story of the day

The big story of the day is out of China and all the financial steps they are taking to rejuvenate their financial markets and economy and Chinese stocks spiked in response. Here is a list of things announced:

1)The PBOC cut its reserve requirement ratio to 9.5% from 10%, which is estimated to free up about 1 trillion yuan (about $140b) in fresh lending. 

2)The PBOC cut the 7 day reverse repo rate to 1.50% from 1.70%.

3)There was a 50 bp drop on the average interest rate paid on existing mortgages.

4)There was a cut in the minimum downpayment to buy any home (even a 2nd one) to 15%.

5)The PBOC is creating a 500b yuan swap facility which would lend money to funds, insurers and brokerage firms to use to buy stocks.

6)There is also another re-lending facility of 300b yuan given to commercial banks that would in turn lend the money to companies and other entities for stock buybacks. 

It's not just lighting a fire under Chinese stocks with the Shanghai comp up 4.2%, the Hang Seng higher by a similar amount and the H share index in Hong Kong jumping by 5.1% but commodities are rallying too. Crude oil is up by $2, copper by .12 per pound (2.7%), and iron ore by $6 (6.5%), to name a few.