PBOC today pumps in the continental financial system amounting to 440 billion CNY (about $ 67.1 billion)
The intervention was carried out through reverse repo agreements. The aim is to satisfy liquidity in Mainland China time before the festive week starting after the Chinese New Year (February 8). Thus PBOC seeks to provide for market participants on additional financial resources at a low enough price to avoid selling of profitable assets. The huge problem of capital outflows from China continues and so far Beijing has failed to stabilize the situation for a long period.
This is the largest one-day intervention within the last 3 years (February 2013) and response of the continuing trend for sales of shares in Shanghai. The intervention is divided into two streams: one with a term 28 days and yields 2.6% with volume $ 54.9 billion; and second - with a term of 7 days and yields 2.25% with volume of $ 12.2 billion.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.