The People’s Bank of China added 320 bn yuan into the banking system this week, the largest weekly cash injection into the banking system since the middle of January this year.
Injected 100bn yuan in open market operations today
- 14-day reverse repos
- 50bn reverse repos mature Sunday
- thus a net 50bn yuan injection
China goes on national holidays beginning Thursday this coming week, October 1, through to October 7. Its not unusual for liquidity to be added ahead of such holidays. The heightened concerns in China re Evergrande have also added impetus to liquidity injections.