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Key Points – February Report
China’s interbank market liquidity conditions stood at a 22-month low in February as the central bank took action to loosen conditions ahead of the spring festival.
Meanwhile economic conditions were stable, with traders encouraged by strong holiday retail activity but remained concerned by a patchy recovery, the latest MNI Liquidity Conditions Index showed.
- The MNI China Liquidity Condition Index stood at 26.8 in February, down from January’s 34.1, with 51.2% of traders reporting looser conditions.
- The MNI China Economy Condition Index was 56.1 in February, down from January’s 59.8, with 31.7% of traders noting improvements, down from 36.6% in January.
- The MNI China PBOC Policy Bias Index read 29.3 in February, versus 31.7 in January, with 58.5% of traders expecting consistent policy from the PBOC, whilst 41.5% saw further easing ahead.
The MNI survey collected the opinions of 41 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 from February 5 – February 23
