PBOC to inject cash funds today
The People's Bank of China have already made a statement indicating they'll be boosting cash market liquidity today.
A 1.2 tln yuan reverse repo operation is due today.
- Note though the net effect is not a 1.2 tln yuan injection due to slightly over 1 tln yuan of funds maturing today.
- The net injection is in the order of 150bn yuan.
This is, say the bank, aimed at ensuring ample liquidity.
In effect its an effort to calm the market and contribute to stability. Markets open in China today and will respond to the viral outbreak. Offshore China-related markets that traded while China was on the long break have already responded much lower. FTSE China A50 Index Futures traded on the SGX hit highs above above 14,500 in mid-January and dropped under 13,000 last week.