PBOC Said to Drain Funds by Selling Repos to Selected Banks
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China’s central bank offered short-term debt to selected financial institutions, helping them deploy excess cash as an economic slowdown stifles demand for loans.
The People’s Bank of China drained tens of billions of yuan from the financial system recently by selling repurchase agreements, according to two people familiar with the matter. The authority sold more than 100 billion yuan ($16 billion) of seven-, 14- and 28-day contracts, Reuters reported Thursday, citing people it didn’t name. An overnight money-market rate earlier slid below 1 percent for the first time since 2009.