MNI: PBOC Issues CNY300 Bn 1-Y MLF; Net Injects CNY400 Bn

     BEIJING (MNI) - The People's Bank of China (PBOC) injected CNY300 billion

via one-year medium-term lending facility (MLF) on Wednesday. The central bank

also injected CNY100 billion via 14-day reverse repos, according to a statement

on the PBOC website. 

- These operations injected net CNY400 billion as no MLF or reverse repos mature

today, according to Wind Information. These aim to offset the demands of cash

and tax payments and maintain liquidity in the banking system at a reasonable

and ample level before the Chinese New Year, the PBOC said.   

     - The MLF rate was unchanged at 3.25%, while the 14-day reverse repo rate

remained at 2.65%.

- The 7-day weighted average interbank repo rate for depository institutions

(DR007) fell to 2.6840% at 10:00 am local time from the close of 2.6865% on

Tuesday: Wind Information. 

- The CFETS-NEX money-market sentiment index closed at 43 on Thursday vs 38 on

Wednesday. A higher index indicates increased market expectations for tighter

liquidity.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: M$A$$$,M$Q$$$,MGQ$$$,MN$MM$]