In mid-January, China’s central bank injected a record 1.03 trillion yuan in bank liquidity into the country’s financial system. At the time, policymakers claimed that heading into the Chinese Lunar New Year local banks were starved of liquidity like never before leading to fears of a cash crunch. This liquidity injection came via multiple reverse repos over several days, as the financial blog ZeroHedge described at the time: “On Wednesday, the People’s Bank of China put in a net 410 billion yuan ($60 billion) through open-market operations, the biggest daily “injection” on record. Despite this massive boost in liquidity, the…
China Unleashes Another Wave Of Liquidity To Prevent Cash Crunch
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk