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China July Interbank Liquidity Seen Loose: Brokerage

CHINA PRESS
MNI (Singapore)

China's interbank liquidity may remain loose in July as demand will fall after the authorities finish the regular assessment of financial institutions, China Securities said in a report. The central bank is expected to maintain a stable supply of base money, it said. Chinese banks' credit expansions have not been strong as expected, which led to less-than-expected demand for base money and may help bring China government bond rates down by 10-20 bps, the report said. The Chinese yuan may stay at 6.3-6.4 against the U.S. dollar next month, the report noted.

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