HKEX Releases 2022 First Quarter Results
Liquidity conditions across China’s interbank markets eased in April, boosted by the central bank cutting banks’ reserve requirement ratio in order to boost a slowing economy, the latest MNI Liquidity Condition Index shows.
The Liquidity Condition Index stood at 30.0 in April, easing from 63.3 in March, with 40.0% of traders reporting an improvement in conditions. The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index stood at 26.7, recovering from March’s 21.7, despite further Covid restrictions.
- The PBOC Policy Bias Index remained below 50 for a 10th consecutive month.
- The Guidance Clarity Index was little changed, as respondents again claim to understand the signals from the PBOC.
The MNI survey collected the opinions of 30 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 Apr 11 – Apr 22.
