“PBOC Struggles as Chinese Borrowers Hold Back”

Its not quite wall-to-wall FOMC and Scotland across the analysts and media today … but its close.

Here’s a run-down of the FOMC and the timings of the Scottish referendum … OK and now that’s out of the way, onto other things.

From the Wall Street Journal overnight: PBOC Struggles as Chinese Borrowers Hold Back

China’s central bank so far has failed to lift the world’s second-largest economy out of its doldrums, and that is in part because of businesspeople like Li Jun.

Mr. Li runs a fish-farming business in eastern China’s Jiangsu province. The People’s Bank of China is pushing the country’s big, state-owned banks to lend more money to businesses like his. Instead of taking the cash, Mr. Li is cutting back.

“Banks are willing to lend to me, but I’m borrowing less because I’m not expanding my business that much,” said Mr. Li, chairman of Jiangsu Haihao Agriculture Development Co.

More at the link.

On Tuesday the PBOC added 500bn yuan in liquidity

Can’t remember who or where it was in the comments … but someone said it fat lot of good it would do if businesses don’t use it to expand (or something along those lines).