PBOC Said to Inject Funds as IPO Demand Triggers a Cash Squeeze

The People’s Bank of China was said to have added money to the banking system today as a cash shortage stemming from new share sales drove the benchmark money-market rate up by the most since July.

The monetary authority supplied funds on a short-term basis, according to two people with direct knowledge of the matter who asked not to be identified. Some 50 billion yuan ($8.2 billion) was offered using Short-term Liquidity Operations, Market News International reported earlier, citing market sources. Eleven companies are due to sell shares for the first time next week and Australia & New Zealand Banking Group Ltd. estimates the sales will lock up at least 1 trillion yuan.