Briefly

PBOC adds liquidity via reverse repos

China's central bank continued to inject funds into the financial system through open market operations on Wednesday. The People's Bank of China said it conducted 104 billion yuan ($14.59 billion) of seven-day reverse repos at an interest rate of 1.9 percent. The move is aimed at keeping liquidity stable at the end of the month, the central bank said.

China conducts central bank bills swap

The People's Bank of China, or the central bank, conducted a central bank bills swap (CBS) operation on Tuesday to improve the liquidity of perpetual bonds. The CBS, valued at 5 billion yuan ($700.2 million), is open to primary dealers for bidding at a fixed rate of 0.1 percent, the central bank said in a statement. The swap will be due on Oct 25, according to the statement. The CBS scheme allows dealers to swap the perpetual bonds they hold for central bank bills, which will boost market demand for perpetual bonds but have a neutral impact on liquidity in the banking system.

Xinhua - China Daily