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在线翻译:
szdaily -> Business/Markets -> 
Central bank boosts liquidity
    2019-10-23  08:53    Shenzhen Daily

THE central bank used open-market operations to inject the largest amount of cash into the banking system since May, as upcoming corporate tax payments tighten liquidity conditions.

The People’s Bank of China yesterday net injected 250 billion yuan (US$35 billion) via seven-day reverse repurchase agreements, according to a statement.

There were no facilities coming due yesterday, and the central bank kept the rate steady at 2.55 percent. China’s 10-year bond yield was little changed at 3.22 percent.

The central bank is acting to fine-tune interbank liquidity conditions while it keeps broader monetary policy settings stable, seeking to keep credit growth appropriate while avoiding rapid debt build-up as the economy slows.

The move comes before an Oct. 24 deadline for companies to pay tax, which typically increases the demand for cash and tightens liquidity.

The central bank injected a net 490 billion yuan in the four days through Oct. 25 last year, and acted last week to funnel 200 billion yuan in one-year funds into the system.

“Part of the timing is that we’re in the tax season, but a big part is that China wants to make sure there’s ample liquidity in the system,” said Gerry Alfonso, executive director of the international business department at Shenwan Hongyuan Group Co.

“There are a lot of ups and downs, they want to calm the market, and they want to do it in a delicate way.”

Central bank Governor Yi Gang responded to last week’s gross domestic product data not by hinting at much greater stimulus in the pipeline, but by reminding investors that China’s focus remains on keeping its heavy debt load under control.

“The central bank wants a monetary policy that is not too tight or too loose,” said Larry Hu, head of China economics at Macquarie Securities Ltd. in Hong Kong.

The slowing economy limits the room for the officials to tighten policy, while the rise in inflation means they can’t ease too much, he said.

“But later this quarter, the central bank is expected to take a looser stance to aid the economy and the LPR is expected to continue to fall,” Hu said. “The yield on government bonds will have room to drop.”(SD-Agencies)

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