27 Jan 2015
PBoC continues to inject liquidity – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team notes that the PBoC injected liquidity for the 2nd consecutive time, and further comments on the data releases in China.
Key Quotes
“China markets are marginally lower, even as PBoC decided to inject liquidity for the 2nd consecutive time, opting to follow last week's CNY50B 7-day reverse repo operation with a combined CNY60B in 7-day and 24-day tools. Recall last week, Chinese officials stated the operations are designed to address anticipated cash squeeze going into the Lunar New Year holiday.”
“Further economic data from the mainland have also been underwhelming. Industrial profits declines accelerated to -8% from -4.2% prior and 2014 growth was just 3.3% - below 5.3% YTD increase in November.”
“Speaking after the release, China vice fin min said industrial operation is within reasonable range, though economy is faced with downward pressure amid "new normal" conditions. December Conf Board leading index growth rose from the prior month, but resident economist said "current economic activity picked up in December on the back of strong consumption", adding "expectations and real estate remaining are subdued, suggesting weak economic growth in Q1 2015”.”
Key Quotes
“China markets are marginally lower, even as PBoC decided to inject liquidity for the 2nd consecutive time, opting to follow last week's CNY50B 7-day reverse repo operation with a combined CNY60B in 7-day and 24-day tools. Recall last week, Chinese officials stated the operations are designed to address anticipated cash squeeze going into the Lunar New Year holiday.”
“Further economic data from the mainland have also been underwhelming. Industrial profits declines accelerated to -8% from -4.2% prior and 2014 growth was just 3.3% - below 5.3% YTD increase in November.”
“Speaking after the release, China vice fin min said industrial operation is within reasonable range, though economy is faced with downward pressure amid "new normal" conditions. December Conf Board leading index growth rose from the prior month, but resident economist said "current economic activity picked up in December on the back of strong consumption", adding "expectations and real estate remaining are subdued, suggesting weak economic growth in Q1 2015”.”