China's market liquidity will remain reasonably ample – Shanghai Securities News

Dhwani Mehta FXStreet

China will maintain reasonably ample market liquidity even though seasonal flows of money injected ahead of the Lunar New Year holiday are recouped, the official Shanghai Securities News said on Monday, citing analysts.

Key takeaways

“A large amount of cash will come back into the banking system, and a relatively big amount of treasury bonds will mature this week, replenishing liquidity.”

“In addition, the central bank, the People's Bank of China (PBOC), will continue to use monetary policy tools such as open market operation flexibly to maintain sufficient liquidity.”

Read: PBOC Adviser: China’s property market has space for development

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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