The People’s Bank of China infused 90 billion yuan or $14 billion into the country’s financial system on Friday as the Evergrande Group’s woes continue.
The additional liquidity was made through seven-day and 14-day reverse repurchase agreements, marking the biggest infusion since February. This is also the first time in the month that over 10 billion yuan was unleashed.
The release comes amid issues hounding the Chine Evergrande Group’s health, and its implication on the country’s real estate and credit markets. Lenders also remain hesitant to loan as the end of the quarter comes ahead of regulatory checks.
The central bank’s move seeks to balance stimulating the economy and ensuring that liquidity infusions do not result in asset bubbles. It has avoided added additional medium-term liquidity since July.
The PBOC has yet to lower its money-market rates, with the interbank borrowing costs up 14 basis points to 2.4% on Friday, the highest in over two months since June 30.
Credit watchers earlier warned that a number of industries could be hit and exposed to credit risks should Evergrande default. 3333 is down 3.42%.