PBOC offering short-term funds to financial institutions

Via MNI, quoting 3 market sources:

• PBOC offering short-term funds to financial institutions
• “In the region of CNY50 billion via Short-term Liquidity Operations to Bank of China, China Development Bank and Industrial Bank.”

MNI go on with the background:

• Liquidity conditions have tightened considerably this week
• the seven-day repo rate is now averaging just under 3.4%, the highest level since September
• Smaller lenders say availability is considerably more constrained than that rate suggests and complain that even if big lenders are getting funds from the PBOC, they aren’t seeing the benefits
• Liquidity conditions are expected to ease up following next week’s 11 IPOs but tough times are expected before then.