MNI China Liquidity Index™ – Jumps To 79.6 In September

Key Points – September Report

Liquidity across China’s interbank money market tightened significantly in September, the latest MNI Liquidity Conditions Index shows.

The Liquidity Condition Index stood at 79.6 in September, up from the 32.7 recorded in August. The higher the index reading, the tighter liquidity appears to survey participants.

• The Economy Condition Index stood at 5.6, the lowest time since dropping to 0 in February 2020, the economy’s pandemic-era low point.
• 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 the August level.
• With the economy seen slowing, 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 fixedincome and currency instruments, and the main funding source for financial institutions. Interviews were conducted Sept 13 – July 24.