The People’s Bank of China pumped a net 170 billion yuan ($24.7 billion) into the financial system via its daily money-market operation on Tuesday, the largest amount since just before the Lunar New Year holiday in January, The Wall Street Journal reports. The huge provision of cash follows comments from Chinese officials in recent days that suggest they are concerned that recent moves to tighten market regulation have caused too much disruption. The banking regulator under new chief Guo Shuqing has cracked down on speculative investment practices that relied on borrowed money and has also imposed sharply higher fines for irregularities. But the new regulations, alongside tighter monetary conditions in China, have proven hard for investors to absorb. China’s main stock market has dropped 5.4% in just over a month, while yields on Chinese government bonds have risen to the highest levels in more than two years.
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