China’s central bank has ended four weeks of monetary tightening, injecting a net $6 billion into the Chinese money market yesterday.
China’s recent actions have shifted from simply reducing or adding liquidity in long cycles, to making short-term back and forth adjustments:
The money market was slightly tighter with the initial public offering by the China Everbright Bank, which raised US$3.2 billion in the country’s second-largest listing of the year.
“The central bank has used the monetary policy instrument in a much more balanced way since July,” said Jiang Feng, an analyst at Shanghai Oriental Wealth and Securities Institute.
Jiang said the bank was changing its pace between money absorption and injection more frequently, as compared with one-sided tightening in the past.
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