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MLF Injection Prevents Capital Arbitrage

CHINA PRESS
MNI (BEIJING)

The People's Bank of China's MLF net investment of CNY1 billion this month was less than market expectations and indicates policymakers want to prevent capital arbitrage, according to Bruce Pang, chief China economist at Jones Lang LaSalle. Banks could still lower the LPR in the short term as market interest rates are lowered under central bank guidance, Pang added. Wang Qing, chief macro analyst of Oriental Jincheng said the MLF injection along with issuance of government bonds would help diffuse local debt risks.

MNI Beijing Bureau | lewis.porylo@marketnews.com
MNI Beijing Bureau | lewis.porylo@marketnews.com

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