Liquidity Ample Despite Central Bank Draining Operations 11-13 12:46 Caijing
» There is still sufficient liquidity in
China's banking system despite the central bank conducting a net drain of funds
for five consecutive weeks after the week-long National Day holiday, analysts
told Caijing on Thursday.
» The People's Bank of China mopped up 81 billion
yuan (US$ 11.86 billion) via regular open market operations this week,
sustaining a policy reversal after it boosted funds for six straight weeks
before the holiday, according to Wind Info, which tracks China's capital
» Banks have ample funds to trade in the bond market due to reduced
lending, and the period of rapid credit growth has passed, an analyst with
Shenyin & Wangguo Securities said.