China Adds $14 Billion Cash as Evergrande’s Pain Roils Markets
- Injection of short-term cash is the highest since February
- Avoiding a liquidity squeeze is the absolute priority: SocGen
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China injected more cash into its banking system in a sign authorities are seeking to avert a funding squeeze amid a seasonal rise in financing demand and the intensifying debt crisis at China Evergrande.
The People’s Bank of China added 90 billion yuan ($14 billion) of funds on a net basis through seven-day and 14-day reverse repurchase agreements on Friday, the most since February. Today was the first time this month it added more than 10 billion yuan short-term liquidity into the banking system on a single day.