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The MNI China Liquidity Survey for December...>

CHINA
CHINA: The MNI China Liquidity Survey for December shows continued tight
liquidity conditions despite recent PBoC liquidity operations. Survey
participants (local Chinese liquidity providers)see liquidity as the tightest
for the year, partially as a result of year end demand. The 7-day repo rate is
also seen moving higher over the next couple of weeks. Again this could be due
to year-end pressures, but the survey also shows that the policy bias is seen
tilting from neutral to tighter. The survey also shows participants continuing
to be very negative regards the economic outlook, with this sub-component of the
survey regaining close to record bearish levels.

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