MNI China Liquidity Index™ – Falls To 33.9 In January

Key Points – January Report

Liquidity across China’s interbank money market eased in January, the latest MNI Liquidity Conditions Index shows.

The Liquidity Condition Index stood at 33.9 in January, down from the 42.9 recorded in December. The higher the index reading, the tighter liquidity appears to survey participants.

• The Economy Condition Index stood at 28.6, recovering from 8.9 previously. January saw the highest reading in 7 months. 
• The PBOC Policy Bias Index edged higher, but still sitting below the 50 mark. 
• The Guidance Clarity Index also edged higher, although was overall little changed on levels seen in recent months. 
• Despite the economy seen picking up somewhat, long-term bond yields are seen lower over the next 3 months

The MNI survey collected the opinions of traders with financial institutions operating in China's interbank market, the country's main platform for trading fixed income and currency instruments, and the main funding source for financial institutions. Interviews were conducted Jan 10 – Jan 21.