Bloomberg carry the report on hints the People's Bank of China is engaging in quantitative easing:
PBOC may have bought government bonds from domestic banks in July
a rare move that has analysts puzzling over the monetary authority's policy intentions
The increase is the biggest since Bloomberg data started in late 2018
Citic thinks it not likely top be QE:
- "There's a possibility that the central bank has bought sovereign bonds," Ming Ming, head of fixed-income research at Citic Securities Co in Beijing, wrote in a note, though he cited the possibility of other factors being behind the rise. The move is more likely to be an effort to "directly finance the real economy" rather than quantitative easing, with the PBOC buying anti-virus bonds that invest in projects with a steady return, he said.
Bolding is mine.
