PBOC's Yi says that central bank will maintain prudent and neutral monetary policy
Comments by PBOC governor Yi Gang
- Will keep liquidity reasonably ample
- Will guide financial institutions to offer financing support for private firms that have temporary liquidity problems
- Financial institutions should step up support for private companies
Tightening credit and liquidity has been a real issue for Chinese banks and companies this year and it's been a balancing act for the most part by the PBOC. There's rumours of a further RRR cut to come in October to continue to pump more liquidity into the market so that will be something to look out for as the year winds down.