Central bank pumps more money into market

[Chris Rice]

Central bank pumps more money into market

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E-mailXinhua, July 3, 2016
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The headquarters of the People's Bank of China in Beijing. (Photo by Shi Yan / China Daily)



China's central bank pumped 840 billion yuan (129 billion U.S. dollars) into the market this week to ease liquidity.

The People's Bank of China (PBOC) conducted 50 billion yuan and 130 billion yuan on Friday and Thursday in seven-day reverse repos.

Both injections were priced to yield 2.25 percent, unchanged from Wednesday's injection of 210 billion yuan and Tuesday's injection of 180 billion yuan, according to a PBOC statement.

The move followed a net injection of 270 billion yuan on Monday, said the PBOC.

http://www.china.org.cn/business/2016-07/03/content_38800995.htm

 

[JayT]

Another case of rich getting richer and poor getting poorer. Now that there's a little liquidity floating around, they can start up the HFT computers and scalp it all back into their personal accounts by years end. Stocks must go up forever, don't you know? Heck with real market valuations! They are trying to provoke everyone to buy (mostly) overvalued stocks under the pretense that it will only go one way, UP, at all costs. Truth is many of those companies can sell their stock and close their doors at the drop of a hat. Do you feel lucky, punk?