A hefty injection of funds into the banking system in China this morning from the People's Bank of China :

  • PBOC inject 350 bn yuan through 7-day reverse repos in open market operations (OMOs) today
  • PBOC inject 220 bn yuan through 28-day reverse repos

The 28 day operation is the first step in likely more to come for liquidity over the Lunar new year holiday. This year China is on holiday from February 4 to 10 (inclusive) . There is a stronger than normal demand for cash over the holiday period.

Plus … the big add of funds should be a positive for the stock market. Bonus.