China boosted its cash injection into the banking system via a recently launched policy tool, in a move designed to ensure sufficient liquidity amid a surge in local government bond sales.
The People’s Bank of China conducted 800 billion yuan ($111 billion) of outright reverse repurchase agreements in November, according to a statement Friday, exceeding the 500 billion yuan injected last month. The contracts are for three months and are aimed at safeguarding the availability of “reasonably ample” liquidity in the banking system, it said.
