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PBOC May Boost Net Injection by MLF: Journal

CHINA PRESS
MNI (Singapore)

The PBOC is expected to add net liquidity when rolling over the maturing CNY200 billion medium-term lending facility on Tuesday to fill a possible liquidity gap in the second half of June, the China Securities Journal reported citing analysts. Liquidity may tighten this month with the accelerated issuance of local government bonds, increased forex purchases by overseas-listed companies for dividend payments and the maturing of more interbank deposit certificates, the newspaper said. Liquidity is unlikely to be significantly tightened in the future as the PBOC may also inject via reverse repos, though volatility may increase, the Journal said citing Song Xuetao, chief analyst at Tianfeng Securities.

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