Zhou's chess tips ease markets while keeping PBOC strategy dark

Beijing

PEOPLE'S Bank of China's (PBOC) governor Zhou Xiaochuan, who has likened monetary-policy communication to chess, is telling markets more about his moves as he makes them.

That doesn't mean he's ready to give the game away. The PBOC's regular cash injections are now coming complete with comments about their intent, helping to soothe markets just before the cash crunch that usually accompanies June regulatory inspections. The central bank has also recently put markets on notice with articles in its in-house newspaper, and offered guidance with open-market operation statements.

Taken together, these moves are showing signs of success by lowerin…