China injects US$24.7 billion into financial markets
The biggest one-day injection since January comes amid official concern about deleveraging campaign
The People’s Bank of China pumped US$24.7 billion into the country’s financial system through its daily money-market operation on Tuesday, reports the Wall Street Journal. It was the largest such move since before the Chinese Lunar New Year holiday nearly four months ago.
The Shanghai exchange was up 0.7% on the move, after an earlier drop of almost 1%. China’s benchmark 10-year government bond yield fell to 3.62% from 3.64%.
China’s central bank said Friday in a monetary-policy report that regulators should handle the pace of deleveraging initiatives carefully. The banking regulator said the same day that they were trying to “avoid creating new risks in the process of resolving existing risks.”
An editorial from Xinhua News Agency on Sunday urged regulators to keep the risk prevention campaign from becoming a risk itself, a sentiment echoed by Premier Li Keqiang over the weekend when he stressed the importance of striking a balance between financial stability and “gradual deleveraging.”