20 April 2019

Central banker seeks to reassure investors, paper says

A central bank official reassured mainland money dealers on Tuesday that money conditions remain ample and the bank will keep its short-term monetary operations stable this year, China Daily reported Tuesday, citing agency reports. But the official warned dealers that institutional investors should avoid excessive borrowing, or leverage, to prevent short-term liquidity shortages from having too much impact on their cash conditions, the report said. The official said that last week’s tight conditions were due mainly to market players underestimating the impact tax payments would have on short-term rates. 

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