China Growth Slows, Bank Injects Record Liquidity

China growth.

If there’s one thing you can bet on, it’s that Chinese policymakers are completely unpredictable. Last night the People’s Bank of China cut the reserve ratio requirement for some of the nation’s largest lenders by one percentage point to 16%.

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  China Credit Squeeze: Goldman Is Calm As Fears Of Crash Soar

Reuters reports that this strange move, which comes after months of concerns about the level of liquidity in China’s financial system and capital outflows, is designed to add more liquidity to the market ahead of the Lunar New Year Holiday. This annual event typically places a strain on China’s financial system as households and companies usually withdraw a larger than average amount of cash from...