The People`s Bank of China (PBoC) injected liquidity four days in a row this week through reverse retirement operations. Reverse deposits are an instrument that allows the central bank to add or reduce the money supply in the banking system. During this cycle, the Central Bank of China injects liquidity into the market through reverse deposits for four consecutive days, industrial earnings growth recovers in April from the lowest recent levels and officials will work on guidelines on panda bonds issued by SSA issuers. The People`s Bank of China (PBoC) announced on its website that it was lowering the 7-day pay-down rate from 2.40 percent to 2.20 percent, but gave no reason to do so. Shanghai (c) The Central Bank of China unexpectedly lowered the rate of reverse pension operations by 20 basis points on Monday, the largest in nearly five years, as authorities accelerated efforts to relieve an economy devastated by the coronavirus pandemic. Reverse pension transactions are short-term credit agreements in which central banks buy securities and then resell them at a slightly higher price. They are used to inject short-term liquidity into an economy. A total of 200 billion yuan (about $28.6 billion) of reverse rest matured on Friday. SHANGHAI, May 29 (Reuters) – China`s central bank left the rate unchanged at 2.20% on Friday for seven-day reverse-repurchase trading. PEKIN, July 24 (Xinhua) — The People`s Bank of China (PBOC), the country`s central bank, on Friday jumped trading in the open market on reverse deposits.
PBoC injected more cash during the week. It injected Rmb 120 billion on Wednesday, Rmb 240 billion on Thursday and Rmb 300 billion on Friday. All reverse-repurchase contracts have a seven-day tenor and an interest rate of 2.2%. Earlier in the day, the PBoC injected 50 billion yuan ($11.4 billion) into money markets with a 7-day back-to-rest, breaking a 29-day trading break without fresh fund injections. A reverse repot is a process in which the central bank buys securities from commercial banks through offers, with an agreement to resell them in the future. The Central Bank of China will inject 120 billion yuan ($16.95 billion) into the banking system on Monday through seven-day buyout contracts, traders said. Data from the Ministry of Finance showed that Chinese state-owned enterprises (SOEs) recorded a 74.3% drop in net profit after tax between January and April 2020 to Rmb 210.6 billion. Four shares listed on the Shenzhen Stock Exchange this week moved closer to the 30% limit for foreign syzuized velvet atolage. Center Testing International Group, Hangzhou Tigermed, Midea Group and Suofeiya Home Collection have been listed by the Stock Exchange on the Watchlist since Wednesday, when their overseas property reached 26%.
According to this year`s government working report, China will adopt a prudent monetary policy in a more flexible and appropriate manner. Enditem Nomura has lowered its annual GDP growth forecast for China to 1 percent this year from 1.5 percent previously, and quarterly GDP forecasts adjusted for an annual contraction of 9 percent, from a previous contraction forecast of 0.9 percent. The PBoC regulates panda bonds sold by states, financial institutions and multilateral banks.