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Key Points – August Report
Liquidity conditions across China’s interbank markets tightened in August, the latest MNI Liquidity Condition Index shows.
The Liquidity Condition Index stood at 53.1 in August, rising from 34.4 in July, with nearly 30% of traders reporting conditions tighter on last month. The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index stood at 40.6, slowing from July’s 73.4, with fears some Covid restrictions may return.
- The PBOC Policy Bias Index remained below 50 for a 13 th 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 32 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 August 15 – August 26
