AGL 5.78 Increased By ▲ 0.03 (0.52%)
ANL 8.88 Increased By ▲ 0.03 (0.34%)
AVN 78.93 Decreased By ▼ -0.57 (-0.72%)
BOP 5.29 Increased By ▲ 0.12 (2.32%)
CNERGY 4.70 Increased By ▲ 0.01 (0.21%)
EFERT 81.57 Increased By ▲ 0.47 (0.58%)
EPCL 50.96 Decreased By ▼ -0.03 (-0.06%)
FCCL 13.35 Decreased By ▼ -0.14 (-1.04%)
FFL 5.74 Decreased By ▼ -0.07 (-1.2%)
FLYNG 7.15 Decreased By ▼ -0.06 (-0.83%)
FNEL 4.82 Increased By ▲ 0.02 (0.42%)
GGGL 8.87 Increased By ▲ 0.17 (1.95%)
GGL 15.90 Increased By ▲ 0.15 (0.95%)
HUMNL 5.79 Decreased By ▼ -0.06 (-1.03%)
KEL 2.68 Increased By ▲ 0.10 (3.88%)
LOTCHEM 29.06 Decreased By ▼ -0.44 (-1.49%)
MLCF 24.99 Decreased By ▼ -0.31 (-1.23%)
OGDC 72.46 Increased By ▲ 0.01 (0.01%)
PAEL 15.35 Decreased By ▼ -0.05 (-0.32%)
PIBTL 5.06 Decreased By ▼ -0.09 (-1.75%)
PRL 16.31 Increased By ▲ 0.06 (0.37%)
SILK 1.08 Increased By ▲ 0.01 (0.93%)
TELE 9.39 Increased By ▲ 0.09 (0.97%)
TPL 7.34 Decreased By ▼ -0.01 (-0.14%)
TPLP 18.90 Decreased By ▼ -0.26 (-1.36%)
TREET 21.95 Increased By ▲ 0.10 (0.46%)
TRG 140.87 Decreased By ▼ -1.93 (-1.35%)
UNITY 17.01 Decreased By ▼ -0.19 (-1.1%)
WAVES 9.90 Decreased By ▼ -0.13 (-1.3%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 4,255 Increased By 7.1 (0.17%)
BR30 15,733 Decreased By -28.8 (-0.18%)
KSE100 42,394 Increased By 44.9 (0.11%)
KSE30 15,664 Increased By 31.9 (0.2%)
Follow us

SHANGHAI: China's short-term money rates eased from levels around their highest in months on Tuesday after the country's central bank stepped up liquidity injection to meet higher demand for cash towards the year-end.

The People's Bank of China (PBOC) injected 200 billion yuan ($31.39 billion) through seven-day reverse repos into the banking system, the biggest daily injection since late October, offseting 10 billion yuan worth of such loans expiring on the same day.

Market sentiment improved and cash conditions largely balanced after the liquidity operation, some bond traders said, adding they expected markets to smoothly tide over the year-end.

The volume-weighted average rate of the benchmark seven-day repo traded in the interbank market was 2.237%, about 18 basis points lower than the previous day's closing average rate of 2.4156%, the loftiest level since Sept. 29.

Also the repo for the same tenor traded on Shanghai stock exchange also eased to 5.18% around midday, down from an 11-month peak of 6% hit a day earlier.

A trader at a Chinese bank said the elevated borrowing cost on the stock exchange suggested that cash tension was structural as non-bank financial institutions, which usually have to borrow from major state-owned banks as their source of funds, had to resort to the exchange market for cash at much higher prices.

Many lenders refrain from lending to peers as they have to shore up cash positions to meet various administrative requirements at year-end, including a quarterly health check by the central bank.

"I don't think cash conditions will dramatically tighten again at the year-end," said a second trader at a Chinese bank. "The PBOC's remarks last night about flexible adjustments also improved sentiment."

The central bank said at its 2022 work meeting that China will keep its monetary policy flexible next year as it seeks to stabilise growth and lower financing costs for businesses amid growing economic headwinds.

Comments

Comments are closed.

China's money rates off highest levels in months after PBOC boosts cash injections

Pakistan's CPI-based inflation in November clocks in at 23.8%

Rupee registers gains, settles at 223.69 against US dollar

Rise in TTP attacks in Pakistan should be concern for Afghan Taliban as well: Rana Sanaullah

SBP-held foreign exchange reserves fall $327mn, stand at $7.5bn

Fawad says PTI to dissolve Punjab, KP assemblies next week

PM Shehbaz calls for ‘practical implementation’ of loss & damage fund to cope with climate challenge

EU tentatively agrees $60 a barrel price cap on Russian seaborne oil

No restrictions placed on LCs for import of oil, other petroleum products: SBP

Record-breaking England put Pakistan to the sword in first Test

Google app payments: IT ministry says issue resolved