Caixin
Nov 21, 2022 07:59 PM
FINANCE

China Withdraws Cash From Banking System as Bond Sell-Off Cools

Covid outbreaks in China’s major cities and the rising fear of fresh curbs has hurt risk sentiment, boosting demand for haven assets and stabilize the bond market.
Covid outbreaks in China’s major cities and the rising fear of fresh curbs has hurt risk sentiment, boosting demand for haven assets and stabilize the bond market.

(Bloomberg) — China withdrew short-term cash from the financial system for the first time in nearly two weeks, as a sell-off in government and corporate bonds eased.

The People’s Bank of China net drained 2 billion yuan ($421 million) via its open-market operations on Monday, the first time since Nov. 9. It injected a total of 368 billion yuan last week via the tool, as onshore bonds got dumped by banks and fund managers due to retail investors’ redemption of their fixed-income assets.

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