Malay Mail China’s money-market rate declined by the most in three weeks as the central bank added cash to the financial system via open-market operations. via Bloomberg
'The People’s Bank of China sold 50 billion yuan (RM30.7 billion) of seven-day reverse-repurchase agreements at 2.5 per cent today, according to a statement on the website. That exceeds the 35 billion yuan of similar contracts maturing today. The PBOC will also auction 50 billion yuan of three— month treasury deposits on behalf of the Ministry of Finance on July 30. The injections came after the Shanghai Composite Index of stocks slumped the most since 2007 yesterday.
'The benchmark seven-day repurchase rate, a gauge of interbank funding availability, fell nine basis points to 2.42 per cent as of 10:17 am in Shanghai, according to a weighted average from the National Interbank Funding Centre. That’s the biggest drop since July 6.
'“The increase in reverse repos shows the PBOC is considering market sentiment, and has the intention to stabilise the money market at such a sensitive time,” said Huang Hai, Beijing-based deputy head of research at SDIC CGOG Futures Co, a unit of State Development & Investment Corp “Actual interbank liquidity is good, and it won’t be a concern in the short term.”'