(单词翻译:单击)
China central bank’s assurance of liquidity1 supply is easing tension across Asian markets today. Asian shares edged higher to reverse a four-day losing streak2 on Wednesday.
Investors4 took comfort from the PBOC’s vow5 to provide funds to institutions if needed. Solid US data has also firmed up investor3 confidence. Take a look at the aftermath of China’s cash squeeze. China’s central bank on Tuesday said that there’s ample liquidity in the markets, citing a set of its data on lending, social financing and provisions.
It was considered a "cardio tonic6" for investor confidence after panic selling on Monday. So on Tuesday, we saw a big "V" shape in the mainland market after the PBOC statement. The PBOC attributes the recent liquidity shortage and rate fluctuations7 to a number of factors, including: fast credit growth, concentrated payment of corporate8 taxes,
And even an increase of cash demand from the Dragon Boat Festival earlier this month. The PBOC is also urging commercial banks to strengthen liquidity and debt management, along with better managing and forecasting cash flows.