CHINA: Central Bank Injects CNY212.2bn via OMO

The total for the week last week was +CNY4.7bn injections, and follows two weeks of withdrawals.  The maturity schedule when compared to other weeks, is moderate and we would look to equity volatility as a potential sign for whether injections may be forthcoming. 

• The PBOC issued CNY130.9bn of 7-day reverse repo at 1.4% during this morning's operations.
• Today's maturities CNY122.3bn.
• Net liquidity injection CNY8.6bn.
• The PBOC monitors and maintains liquidity in the interbank system through the issuance of reverse repo.
• The CFETS Pledged Repo Deposit Institutions 7 Day Weighted is at 1.40%, from prior close of 1.46%.
• The China overnight interbank repo rate is at 1.25%, from the prior close of 1.30%.
• The China 7-day interbank repo rate is at 1.40%, from the prior close of 1.46%.

• CHINA PBOC CONDUCTS CNY130.9 BLN VIA 7-DAY REVERSE REPO MON

China must actively pursue new growth opportunities in areas such as expanding consumption and investment, advancing technology and industrial development, and the promotion of urban-rural integration, according to Han Wenxiu, vice director at the Central Financial and Economic Commission. At a recent conference organised by the China Center for International Economic Exchanges, Han acknowledged that China’s current economic development faces complex, intertwined cyclical, structural and institutional challenges. He emphasised the importance of maintaining necessary fiscal deficits, managing total debt levels and ensuring adequate overall expenditure.