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Inter-bank market liquidity is..........>

CHINA PRESS

CHINA PRESS: Inter-bank market liquidity is expected to recover in the first

half of October as fiscal spending at the end of the quarter would increase

liquidity, China Securities Journal said in a commentary on Monday. The tax

season and financial supervision at the end of Q3 had dampened banks'

willingness to lend and had seen borrowing costs rise, the Journal said. The

commentary noted that considerable liquidity had been released by the recent cut

in the reserve requirement ratio, the renewal of medium-term lending facility

and the injection of reverse repos.

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