China’s central bank made its biggest one-day cash injection into the financial system in nearly four months.
The Wall Street Journal said the move is part of Beijing’s efforts to ease investor jitters over its recent campaign to rein in speculative investing fueled by debt.
The People’s Bank of China on Tuesday pumped a net 170 billion yuan (US$24.7 billion) into the country’s financial markets via its daily money-market operation, the largest amount since just before the Lunar New Year holiday in January, the newspaper said.
Officials have voiced concern that recent moves to tighten market regulation have caused too much disruption.
President Xi Jinping’s call for financial stability ahead of a major leadership shuffle later this year led regulators to roll out new rules.
But the new regulations, along with tighter monetary conditions, have hurt investor confidence.
China’s main stock market has dropped 5.4 percent in just over a month, while yields on Chinese government bonds have risen to the highest levels in more than two years, the Journal said.
But after the PBoC’s latest move, the Shanghai stock market rose 0.7 percent on Tuesday, having earlier fallen by nearly 1 percent.
The yield on China’s benchmark 10-year government bond fell back to 3.62 percent from 3.64 percent, the WSJ said.
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