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PBOC May Inject Liquidity to meet Local Bond Sales: Journal

CHINA PRESS
MNI (Beijing)

The People's Bank of China may inject liquidity given rising local government bond issuances in May and keep market rates around its policy rates, the China Securities Journal said citing Zhang Xu, the chief fixed-income analyst with Everbright Securities. Some market participants expect a liquidity gap of around CNY1 trillion in May when bond issuances pick up and companies remit taxes from last year, although some such as China International Capital Corporation predicted a smaller gap, the newspaper reported.

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