China withdraws a large amount of liquidity from the market

The Central Bank of China injected 10 billion yuan, or $ 1.5 billion, into the banking system through 7-day repo agreements.

This compares with the 110 billion yuan of loans in due today, which means it withdrew 100 billion yuan of cash.

Over the course of the week, China’s central bank withdrew 660 billion yuan on a net basis, the largest weekly cash withdrawal since the beginning of November.

Interestingly, markets expect the central bank to roll over the liquidity shortage again before the Lunar New Year holiday, which falls from January 31 to February 6. questyear, although investors remain divided on the upcoming further monetary easing in the coming months. The second largest economy in the world.