Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
For roughly three weeks, funds have been in short supply on China's interbank market and the interest rates banks charge to lend to each other have surged to record highs/XINHUA-File

World

China to ‘adjust’ liquidity for financial stability

For roughly three weeks, funds have been in short supply on China's interbank market and the interest rates banks charge to lend to each other have surged to record highs/XINHUA-File

For roughly three weeks, funds have been in short supply on China’s interbank market and the interest rates banks charge to lend to each other have surged to record highs/XINHUA-File

SHANGHAI, Jun 28 – China’s central bank said on Friday it would “adjust” liquidity to ensure stability after a weeks-long squeeze that has rattled financial markets.

“The PBoC (People’s Bank of China) will use all sorts of instruments and measures to adjust the overall liquidity level, so as to ensure the overall stability of the market,” bank head Zhou Xiaochuan told a financial forum in the commercial hub of Shanghai.

For roughly three weeks, funds have been in short supply on China’s interbank market and the interest rates banks charge to lend to each other have surged to record highs.

China’s central bank on Tuesday confirmed it had already offered liquidity “support” to banks and pledged to provide more if needed.

That statement marked an apparent change of course after the central bank earlier ruled out providing fresh funds and ordered banks to put their financial houses in order.

Zhou remained confident about China’s growth, though he acknowledged the economy had slowed.

“The Chinese economy, basically speaking, has kept stable growth,” Zhou said.

“The growth rate has slowed down a little bit, but the growth rate is still in a reasonable range,” he said, but gave no specific figure.

China has set its economic growth target at 7.5 percent for all of this year.

The country’s economy, a crucial driver of global growth, expanded 7.8 percent in 2012, its worst performance in 13 years.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...