Liquidity conditions in the interbank...>

CHINA PRESS: Liquidity conditions in the interbank market are expected to come

under pressure in the short term as a large amount of the People's Bank of

China's monetary facilities will mature, the China Securities Journal reported

Tuesday. Facilities worth about CNY1 trillion will mature this week, the

second-biggest week this year. The PBOC needs to act to contain potential risks,

the report suggested. The tightness caused by structural problems will be

amplified because banks will be reluctant to lend at the end of month, which

will further push up money market rates, the report warned. Given that the

excess reserve ratios of banks are still low and liquidity conditions are being

suppressed, combined with negative factors at home and abroad, liquidity

conditions can be expected to remain tight for the rest of this year, the report

noted. (China Securities Journal)