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PBOC May Add More Liquidity in Mid-Jan: Journal

CHINA PRESS
MNI (Singapore)

The People’s Bank of China is expected to increase liquidity injection in the second half of January via reverse repos and medium-term lending facilities to fill a liquidity gap of about CNY2 trillion, the China Securities Journal reported citing analysts. The tighter liquidity this month is largely due to major tax collection at the beginning of the year, up to CNY700 billion of government bond issuance as well as residents’ increased cash demand before the Spring Festival in February, the newspaper said citing analysts. The PBOC is unlikely to cut reserve requirement ratios for the second month, the newspaper said.

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