China Gets Local Government Help in Avoiding Cash Crunch
- PBOC to hand lenders funds for infrastructure investments soon
- Beijing will roll over one-year policy loans next week: survey
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China’s money market has this week signaled concerns about a potential liquidity crunch, but the central bank is expected to resist boosting fund injections.
That’s partly because it may get a helping hand from the nation’s central and local authorities. June is usually a big month for fiscal spending, when various levels of governments pay for infrastructure and other projects, resulting in funds gathered via taxation getting transferred from a Treasury account at the central bank to commercial lenders.