Economics
PBOC’s Cash Injection Disappoints Stock Traders Wanting More
- China injects 150 billion yuan, almost matching amount due
- Stocks decline as PBOC continues with policy normalization
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The People’s Bank of China signaled its intention to contain rising leverage by adding just enough cash to maintain medium-term liquidity. Stocks fell as expectations that the central bank would loosen its purse string were dashed.
The PBOC injected 150 billion yuan ($23 billion) into the financial system on Thursday with its medium-term lending facility. That more-or-less matches the 100 billion yuan due and 56.1 billion yuan of targeted loans maturing on April 25.