On Wednesday, the Peoples Bank of China (PBOC) injected a whopping 560 billion yuan of liquidity into its financial system through many open market operations, they did the same again in Thursday’s open market move, and sold 250BN yuan in 7 Day repos, and 150BN in 28 Day repos, which net of maturities resulted in a whopping net 380BN yuan ($56.2BN) liquidity injection.
The total net liquidity injection this week up to Thursday, is a whopping 1.14 Trillion yuan with Friday still to play out.
The move is being regarded as a panic at the increasing bad news and the economic slowdown, with the sole aim of keeping then central bank liquid.
On Monday in a press conference between the PBoC, the MoF and the NDRC, Beijing announced new tax cuts and fresh measures to stabilise auto consumption including an announcement that authorities are supportive of increasing issuance of local government “special bonds” to stimulate infrastructure spending were all made in a “stimulus” spasm.
Chinese Premier Li has called for more investments in infrastructure and services, while also voicing support for a “stepping-up” of targeted economic controls from authorities.
It would appear that this week’s record liquidity injections have had zero impact on Chinese stocks, being Thursday.
China is also preparing for the two week holiday as they head up to their New Year celebrations, with the ever smiling Xi, wanting to ensure the holiday season moves ahead without issue, so as not to attract any bad luck for the coming year.