PBoC offers reassurance on market liquidity after large-scale bond operation
Rollover of special government bonds will not have significant impact on liquidity, PBoC says
A rollover of special government bonds worth 600 billion yuan ($90 billion) will not impact banking system liquidity, according to Xu Zhong, director-general of the research bureau at the People’s Bank of China (PBoC).
The unusual operation is related to the funding of China’s sovereign wealth fund, and is designed to circumvent laws prohibiting the PBoC operating in the primary market.
On August 29, the Ministry of Finance (MoF) issued 600 billion yuan of special government bonds to
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