The announcement yesterday from Beijing to step up the redevelopment of urban slum areas is being seen as a message that authorities there are trying to calm markets in the wake of the liquidity crunch:

“We need to maintain the policy’s continuity and stability and stabilise market expectations,” Xinhua quoted the State Council, after a meeting chaired by Premier Li Keqiang

(The State Council compromises the highest Chinese officials)

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Other reports yesterday said that liquidity conditions are expected to improve in July. Such developments were a positive for the AUD.