The People’s Bank of China injected 30 billion yuan or $4.6 billion of liquidity into its financial system in further moves to cool the market from regulatory fears.
CSI 300 is up +1.89%, Hang Seng Index is up +3.30%, USDCNY is down -0.49%.
- PBOC’s move is a shift from its usual daily liquidity operations amid seasonal liquidity tightness in the financial system at month-end.
- The liquidity injection happens following a rout in China’s stocks following market fears over Beijing’s crackdown on the private education sector.
- The cash operation also occurs a day after China’s securities regulator convened a meeting with banking executives to ease the market fears.
- Following China’s move, interbank borrowing costs fell on Thursday, with the overnight repurchase rate down the most in almost a month.
Leave a Reply