It's repo, not stimulus but so far the Chinese equity markets seem to be in party mode.
The CSI 300 is up 60.49 (+1.30%) at 4,704.09 while Hong Kong's Hang Seng is up 1.85%.
From Bloomberg via Singapore's Business Times, February 9:
Some of the liquidity pressure the PBOC must offset stems from household behaviour
THE People’s Bank of China (PBOC) is boosting the supply of money available to banks to ensure they can meet the surge in demand for cash during the Chinese New Year holidays.
The central bank injected a total of 600 billion yuan (S$110 billion) via a 14-day repurchase agreements late last week, ending a two-month hiatus for such operations. Industrial Securities forecasts the PBOC to add as much as 3.5 trillion yuan of funds via similar tools before the holidays kick off on Sunday (Feb 8).
The injections would address a roughly 3.2 trillion yuan liquidity gap identified by Bloomberg calculations. Withdrawals related to holiday spending, heavy government bond issuance and surging corporate demand for the yuan are all expected to drain funds from the banking system.
For the PBOC, keeping the financial plumbing well-greased is essential to ward off a seasonal cash crunch and maintain economic momentum against mounting headwinds. Before the latest move, the PBOC doubled its bond purchases in January and added a record one trillion yuan of medium to long-term funds into the banking system.
“The central bank has ample room to roll over liquidity,” said Ming Ming, chief economist at Citic Securities....
....MUCH MORE
