SHANGHAI: China’s central bank said on Tuesday that its huge liquidity injections through open market operations this week showed its determination to stabilise financial market expectations and restore market confidence.
The remarks were published on the official WeChat account of the People’s Bank of China (PBOC) after it injected a total of 1.7 trillion yuan (RM1 tril) via reverse repos on Monday and Tuesday.
China’s equity and commodities markets plunged on Monday on fears about a spreading virus outbreak, wiping out US$393 bil (RM1.6 tril) in stock market capitalisation, but were not as volatile on Tuesday.
The central bank said the larger-than-expected liquidity injection should push money market and bond yields down, and reduce financing costs and ease financial pressure on small, micro businesses. – Feb 4, 2020, Reuters
