As China Pumps Liquidity, Concerns Over Financial Tightening

As China is reported to have pumped $24.7 billion of liquidity into its financial system Tuesday to boost investor confidence, an HSBC report dives deeper into concerns regarding financial tightening among Chinese economic thinkers.

Financial Tightening? China's aggressive move

On Tuesday, China’s central bank injected its biggest one-day amount into the country’s leveraged financial system in four months, Dow Jones Newswires first reported. The move, executed through its daily money market operation, was intended to calm skittish investor nerves over excessive borrowing and potentially unsustainable debt to revenue ratios.

Dow Jones noted the...