China says will not resort to flood-like stimulus, will keep liquidity reasonably ample

This comes after the PBOC injected liquidity into the system earlier today

• PBOC offers 700bn yuan in a medium term lending facility

The move helped to bolster Chinese equities, with the Shanghai Composite ending the day 2.3% higher to start the new week.

Despite the ongoing rhetoric by Chinese authorities that the economy is getting back on track, the pressure will be on the PBOC to keep acting in order to alleviate credit stresses seen in the domestic economy; in turn, keep investors happy as well.