MNI Indicators: MNI China Liquidity Index™ – Rises To 59.4 In September

Key Points – September Report

Liquidity conditions across China’s interbank markets tightened again in September, the latest MNI Liquidity Condition Index shows.

The Liquidity Condition Index stood at 59.4 in September, rising from 53.1 in August, with nearly 35% 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 48.4, picking up from August’s 40.6, as Covid restriction fears eased somewhat. 
• The PBOC Policy Bias Index remained below 50 for a 15 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 September 12 – September 23.