The People's Bank of China skipped daily open market operations today (for the fifth time in the past two weeks) but did inject funds into the system via its medium-term lending facility (MLF)

  • PBOC inject funds via MLF today
  • PBOC sets USD/CNY central rate at 6.8948 (vs. yesterday at 6.9051)

Reuters recap, and with some more background etc:

  • Provided 459 billion yuan into the financial system via medium-term lending facility (MLF), more than compensating for some MLF loans that matured last week and some set to mature next week
  • "They are more willing to provide slightly longer term facilities because they think that would be feeding through into more productive economic areas" said Frances Cheung, Head of Rates Strategy for Asia ex-Japan at Societe Generale in Hong Kong."They don't want to send an easing signal across the board, but they don't want to really squeeze the market that hard. So it is kind of creating a neutral to a mildly tightening condition in the market"

Link is here for more, well worth reading

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And as a ps ....

Morgan Stanley has cut its 12month forecast for the Shanghai Composite

  • to 3700
  • from 4400

MS citing :

  • PBOC tightening
  • Tighter regulations

Morgan Stanley had been one of the most bullish shops on China A shares at the edn of last year