China central bank to inject net 380b yuan, a day after record move

[SHANGHAI] China's central bank said it will make another big cash injection through open market operations on Thursday, following its biggest-ever net liquidity injection a day earlier.

The People's Bank of China (PBOC) is injecting 250 billion yuan through seven-day reverse bond repurchase agreements and 150 billion yuan through 28-day reverse repos, traders said.

On a net basis, the PBOC will inject a net 380 billion yuan (S$76.2 billion) into the market for the day, as 20 billion yuan worth of reverse repos are set to expire on Thursday.

The PBOC has injected 1.14 trillion yuan on a net basis into the banking system so far this week, according to Reuters calculation based on official data.

China's central bank injected a record $83 billion into the country's financial system on Wednesday, seeking to avoid a cash crunch ahead of a long holiday period that would put further pressure on the weakening economy.

REUTERS