MNI China Liquidity Index™ – Rises To 37.5 in March

Key Points – March 2023 Report

Liquidity across China’s interbank market tightened modestly in March but conditions remained ample, with the People’s Bank of China (PBOC) taking measures to ensure liquidity in the money markets, to support the economic recovery and insulate the financial sector from turmoil after the SVB collapse, the latest MNI liquidity survey shows.

The MNI Liquidity Condition Index climbed to 37.5 in March, up from 35.7 in February, with 47.2% of thetraders reporting looser liquidity than last month while another 22.2% of the traders saw sometightening.The MNI Economy Condition Index was 75.0, downfrom 78.6, with 63.9% of the participants confident in the recovery while 13.9% of traders said they areworried the recovery lacks momentum.

• The PBOC Policy Bias Index was 38.9, down from 44.3, with 78% of local traders believing Beijing will maintain the current level of ample liquidity.
• The Guidance Clarity Index stood at 56.9, followingthe previous reading of 58.6, with 86.1% of theparticipants understanding well the PBOC’s policy intentions.

MNI_China_Liquidity_Index_March_Presser_2023 (1).pdf

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