China pumps the largest short -term liquidity this week since January

China has strengthened the pump -short -term liquidity in the banking system this week to the highest level since January, in an effort to compensate for the liquidity drained by tax payments and dense government debt. This week, the Chinese People’s Bank pumped a net liquidity of 1.3 trillion yuan ($ 181 billion) into the banking system through the seven -day purchase, according to the “Bloomberg” accounts. This step comes in light of the rise in the purchase prices for one night and seven days above the basic interest rate of the Chinese People’s Bank this month, in an indication of the extremism of liquidity conditions in the market. Support of the Chinese economy in light of the poor demand. This cash pump also reflects the eagerness of the central bank to keep the financing conditions enough to support the Chinese economy, which is still fragile in the light of any decline in external exports and the weakness of local consumer confidence. Australia and New Zealand banking group. This week, the Chinese People’s Bank strengthened short liquidity, with the aim of supporting liquidity levels amid the pressure of issuing government bonds and taxpayers. July .. The highlight of the tax season is July one of the most important months of tax payment in China, during which tax is paid, such as value -added tax and income tax, along with quarter -year tax such as stampage and tax on the protection of the environment whose expiry date will be due in the middle of the month. The major public effects versions extract the liquidity from the market. Huachuang Securities expects the net government publications to rise to about 1.6 trillion yuan during this month, with an increase in the convergence of a trillion yuan annually, according to a research note issued by the company. However, Chabing Shing does not expect the central bank to continue to pump liquidity into the banking system, as the tax law date was on July 15. The slow pace of pump and the improvement of liquidity reduced the Chinese central bank the rate of liquidity on Friday, to reach a net of 102.8 billion yuan on Wednesday. Purchasing prices fell for the third day in a row, indicating that the efforts of the central bank to ease the liquidity pressure began to bear fruit.