The Zags and Zigs Of Chinese Liquidity
'PBoC Watching' The World’s Number Two Central Bank
Chinese Liquidity is on the up, helped by the weak US dollar and underpinned by a need to support the stuttering real economy. The main conduit remain the People’s Bank (PBoC) which largely injects liquidity through open-market operations, including large-scale reverse repos. Evidence the following chart showing a rolling 28-day plot of daily operations. Although the raw data can be highly distorted by seasonal events, 2025 has seen a clear pick-up in the size of these inflows. What does this mean?
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