PBoC leaves banking sector sweating over liquidity squeeze
The Chinese banking sector is still struggling with tight liquidity conditions, as the People's Bank of China (PBoC) refrains – at least publicly – from intervening.
The seven-day bond repurchase rate, a key liquidity benchmark, fell from 11.62% to 8.12% when trading opened today, with rumours circulating that the central bank had injected funds into some of China's largest banks and instructed them to start lending.
The PBoC has not confirmed that rumour, however, and its representative office
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