China Seeks to Shore Up Sentiment With Strong Yuan Fix, Cash Injection

(Bloomberg) — The People’s Bank of China moved to boost fragile market sentiment with a stronger-than-expected reference rate for the yuan and the largest injection of short-term cash to the financial system since February.

The central bank injected 297 billion yuan ($40.7 billion) of short-term liquidity on Wednesday. That came right after it offered the most forceful guidance to the market since October via its daily fixing for the managed currency.