Li: China will maintain appropriate liquidity next year

Chinese Premier Li Keqiang promised to maintain “appropriate” liquidity in 2014 to stabilize financial markets and the broader economy, Reuters reported, citing comments Li made during a recent inspection tour to the northern Chinese city of Tianjin. The statement came after cash crunches in China’s money markets in June and December, which many market observers believe were engineered by the central bank. The People’s Bank of China refused to aid the market with large cash injections to help banks cope with elevated cash demand at the end of each quarter.