China Pumps $17 Billion Into System Amid Evergrande Concerns
- PBOC’s net cash addition Thursday at 110 billion yuan
- Markets are volatile amid continuing Evergrande worries
Evergrande Issue Is Not Systemic, JPMorgan’s Chang Says
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China’s central bank net-injected the most short-term liquidity in eight months into the financial system, with markets roiled by concerns over China Evergrande Group’s debt crisis.
The People’s Bank of China pumped in 110 billion yuan ($17 billion) of cash with seven- and 14-day reverse repurchase agreements. That was the largest addition through open-market operations since late January, when a funding squeeze sent interbank rates soaring. Prior to Thursday, the PBOC had injected liquidity for three straight sessions, stoking bets that Beijing hopes to soothe market nerves over Evergrande.