PBOC Adds Funds, Cuts a Lending Rate to Prevent IPO Cash Squeeze

Updated on
  • Share sales to restart this year after being suspended in July
  • PBOC cuts SLF interest rates offered to small local banks

The People’s Bank of China added cash to the financial system using a short-term lending tool and cut the rate on a funding facility for smaller banks, preempting a possible liquidity squeeze as a freeze on new share sales draws to an end.

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