Latest News:  
Beijing   Sunny    21 / 12 ℃  City Forecast

English>>China Business

PBOC slows liquidity injection into interbank market


08:22, October 20, 2012

BEIJING, Oct. 19 (Xinhua) -- The People's Bank of China (PBOC), the central bank, slowed its efforts to inject capital into banks through open market operations this week due to ample liquidity in the interbank market.

The central bank allowed a net 221 billion yuan (35.08 billion U.S. dollars) to drain from money markets this week, the largest drain in eight months, as previously issued reverse repos matured.

The liquidity tightening came after the central bank used repos to buy30 billion yuan in securities from banks with terms of seven and 14 days earlier this week.

The yield for seven-day reverse repos stood at 3.35 percent, while that for 14-day reverse repos remained unchanged at 3.45 percent.

China's liquidity has improved since banks increased their pace of lending last month, prompting the central bank to halt liquidity injections this week.

The country's banks extended 623.2 billion yuan in loans in September, up 153.9 billion yuan from a year earlier, bringing the nation's total new yuan loans in the first three quarters to 6.72 trillion yuan, up 1.04 trillion yuan year on year.

However, Zhang Zhiwei, chief China economist at Nomura, said the central bank may cut benchmark interest rates this month to replenish liquidity, as a record 405 billion yuan in reverse repos will mature next week.

News we recommend:
Let the train, take the strain Personal care market to keep growing An Apple a day isn't keeping critics away
Global companies expand rapidly in China Shanghai's 'other' market China's tourism industry reaps golden harvest
Commentary:Asking the right questions  More Investment, More Woes? All that glitters is gold


Related Reading

Leave your comment0 comments

  1. Name


Selections for you

  1. South China Sea Fleet in training

  2. Airmen repair radar antenna

  3. N. Korea's Kim attends event

  4. Same-sex wedding performed in Fujian Province

  5. Naked truth challenges values

  6. Largest Apple store in Asia on Wangfujing

  7. Get ready for autumn health

  8. Funny pictures by Chinese net friends

Most Popular


  1. Experts on touch-and-go landing on the Liaoning
  2. There is no justification for street violence
  3. Tokyo shrine visit angers neighbors
  4. BRICS can build optimism
  5. Rich list shines a light on China’s shifting economy
  6. Indigenous industry key to change
  7. Miners must break ground overseas
  8. 2nd US debate sees candidates flex China muscle
  9. Romney's post-debate bounce could soon fade
  10. New road rule marks first step to orderly society

What’s happening in China

Food poisoning sickens over 100 students

  1. Survey shows Chinese workers stressed out
  2. Retiring can cause more quarrels, divorces: court
  3. Training center for helicopter pilots opens
  4. Young migrant workers targeted in phone scams
  5. Microblog helps Chinese girl regain father's wages