The PBOC has drained liquidity via......>

CHINA PRESS: The PBOC has drained liquidity via its open market operations for

eight consecutive trading days as of Thursday, causing liquidity to tighten

slightly and non-bank financial institutions to face funding pressures, China

Securities Journal reported on Friday. The report cited sources that said at the

root of this problem are banks, which are facing regulation tests at month-end,

and are becoming unwilling to lend out money to those NBFIs. However, as the

total amount of liquidity is not low and the banks' liquidity condition remain

stable, it is not likely for liquidity to become much tighter, and liquidity

conditions will improve in the beginning of April, the report said.