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China Injects Short-Term Cash After Crackdowns Spook Markets

  • PBOC adds 30 billion yuan with seven-day reverse repos
  • More liquidity was added to help market sentiment: Citic Sec
The People's Bank of China (PBOC) headquarters in Beijing.

The People's Bank of China (PBOC) headquarters in Beijing.

Photographer: Yan Cong/Bloomberg
Updated on

China’s central bank broke out of its usual pattern of daily liquidity operations, as it boosted a cash injection into the financial system, soothing market nerves frayed by regulatory crackdowns.

The People’s Bank of China added 30 billion yuan ($4.6 billion) of liquidity into the financial system with seven-day reverse repurchase agreements, raising it from 10 billion yuan of injections for the first time since June 30. The move also came amid seasonal tightness in liquidity ahead of the month-end.