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Key Points – November Report
Liquidity picked up in November, as the People’s Bank of China maintained an ‘ample’ supply of cash, the latest MNI Liquidity Conditions Index shows.
The Liquidity Condition Index stood at 43.8 in October, down from the 78.1 recorded in October. The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index remains at elevated levels as the economy recovers, although just shy of the levels seen in both September and October.
- The PBOC Policy Bias Index was unchanged on the elevated levels seen in October, with more than a third of respondents seeing a tightening bias from the central bank.
- The Guidance Clarity Index edged lower, although no respondents saw the central bank as giving foggier indications of its intentions and the vast majority saw no change in guidance opacity.
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 Nov 9 and 20.
