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PBOC To Maintain Small Liquidity Injections - Daily

CHINA PRESS
MNI (Singapore)

The People’s Bank of China is expected to continue adding small amounts of liquidity into the financial system in the short-term, the Securities Daily reported citing analysts. The PBOC’s daily injections of CNY2 billion via reverse repos since late July signals its intent to keep liquidity reasonably ample, the Daily said. The liquidity outlook in September will be complicated by the maturity of a CNY600 billion medium-term lending facility and as banks hold onto capital ahead of end of quarter regulatory assessments, the newspaper said citing Wang Youxin, senior researcher at Bank of China. However, government spending generally increases in September, with the decline in government deposits expected to provide some support for liquidity, Wang added.

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