China money rate drops for fourth day on ample cash supplies
LONDON. KAZINFORM China's benchmark money-market rate fell for a fourth day, the longest declining streak in almost two months, after the biggest fund injections by the central bank since January.
The People's Bank of China added a net 91 billion yuan ($14.6 billion) last week to meet demand before public holidays on May 1 and 2, according to data compiled by Bloomberg. The monetary authority drained 60 billion yuan today by selling 28-day repurchase agreements at 4 percent, according to a statement on its website.
"The central bank injected cash ahead of the holidays to meet demand, and now that cash flows after the holidays have weighed down rates, today's operation is to hedge the impact," Wei Fengchun, head of macro strategy at Shenzhen-based Bosera Asset Management Co. wrote in a note today. "There's no change in its policy stance. It's still trying to smooth the market," Bloomberg reports. Read more here