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MNI: PBOC Liquidity Injection Ahead As Gov Debt Issuance Booms

MNI (Singapore)
Singapore

China’s central bank will ensure funds in the market to meet credit demands under plans to boost the economy, analysts say.

True

Increases in liquidity injections are expected from the People’s Bank of China in the next few months as the government accelerates debt issuance to shore up the economy, which would boost China’s aggregate financing and M2, according to market analysts and economists.

The total liquidity gap in June would be around CNY600 billion, as bond issuance from both central and local governments is expected to reach as much as CNY1.4 trillion, compared with CNY391.2 billion in April, said Liu Yu, an analyst at Guangfa Securities.

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Increases in liquidity injections are expected from the People’s Bank of China in the next few months as the government accelerates debt issuance to shore up the economy, which would boost China’s aggregate financing and M2, according to market analysts and economists.

The total liquidity gap in June would be around CNY600 billion, as bond issuance from both central and local governments is expected to reach as much as CNY1.4 trillion, compared with CNY391.2 billion in April, said Liu Yu, an analyst at Guangfa Securities.

Keep reading...Show less