Key Points – July Report
Liquidity eased modestly in July, but still sees pressure from tax payments and local government bond issuance, the latest MNI Liquidity Conditions Index shows.
The Liquidity Condition Index stood at 68.8 in July, down from the 81.3 recorded in June. The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index continues to recover, with more than 80% of respondents seeing an improvement.
- The PBOC Policy Bias Index was little changed, although a quarter of those surveyed now saw the PBOS with a tightening bias.
- The Guidance Clarity Index edged lower, although the central bank is still seen giving clear indications of its intentions.
The MNI survey collected the opinions of traders at financial institutions operating in China's interbank market, the country's main platform for trading fixedincome and currency instruments, and the main funding source for financial institutions. Interviews were conducted between July 13 and July 24.
