And, in today's open market operations:
- To inject 50 bn yuan through 7-day reverse repos
- To inject 30 bn yuan through 14-day reverse repos
Net injection/drain is zero, the maturities rolling off matching with the 80bn yuan injection for the day.
The PBOC strengthening the yuan again today, for its 6th day in a row. For its longest streak since January of 2016.
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In the Australian press this morning:
- China's authorities are increasingly worried by stress in the country's financial system and the sudden slowdown in economic growth
- Fearing that it may now be too dangerous to press ahead with their draconian crackdown on shadow banking
- The People's Bank (PBOC) began signalling late last week that it would soften its assault on the credit markets, shifting to pro-growth and efforts to prevent a liquidity shock before November's Communist Party Congress
- Premier Li Keqiang has since told the International Monetary Fund that regulatory overkill would be a mistake at this delicate time
- The state media says "financial stability" is now a greater priority than debt control
here is the link to the article at the Australian Financial Review. May be gated.
Yes. We've been going on about this for a while ...there will be efforts to wind back leverage and reform, but not at the expense of an economic slowdown ahead of the Congress later this year. Chinese authorities will seek to balance these competing goals.
