Sina.com reports that the PBOC will use their Standard Lending Facility to add 500bn in liquidity.
Not sure what to make of this news on the face of it as they have been drawing liquidity out of the system, but nothing around this size.
Update: Sina.com is citing a banking analysist Qui Guanhua whi says they will be providing 100bn yuan to each bank today and tomorrow with a 3 month duration.
It looks like a short term pump rather than anything more worrying but we’ll keep an eye on it.
