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Key Points – June Report
Liquidity conditions across China’s interbank markets tightened in May, with a pick-up in credit demand into the half-year end, the latest MNI Liquidity Condition Index shows.
The Liquidity Condition Index stood at 57.8 in June, rising from 12.5 in May, with 22% of traders reporting conditions worse than last month. The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index stood at 18.8, slowing from May’s 18.8, as some Covid restrictions eased.
- The PBOC Policy Bias Index remained below 50 for a 12 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 June 13– June 24.
