The People's Bank of China (PBOC) may...>

CHINA PRESS: The People's Bank of China (PBOC) may inject liquidity via its

Medium-term Lending Facility (MLF) in mid December to hedge the impact of MLFs

maturing then, Financial News, a financial journal run by the PBOC, reported

Wednesday. On Wednesday, the PBOC did not roll over the full amount of MLFs

maturing in December  because the liquidity has been quite loose recently and a

roll-over of the full amount would have made liquidity even looser. In this way,

the PBOC can better tackle the uncertain impact of end-of-year fiscal

expenditures, the report said. Past experiences suggest that the PBOC might use

28-day reverse repos to supply liquidity to help financial institutions to pass

year-end and the PBOC could very possibly use its Temporary Liquidity Facility

(TLF) to provide additional money for the banking system during the Spring

Festival (Chinese New Year), as it did in 2017. The targeted required reserve

ratio cut that takes effect next year will release around CNY300 billion in

long-term liquidity into the banking system and fiscal expenditures at year-end

might exceed CNY1 trillion, so liquidity is very likely to remain stable during

year-end and the Spring Festival, the report said. (Financial News)