Key Points – December Report
Liquidity conditions across China’s interbank markets tightened in November, the latest MNI Liquidity Condition Index shows.
The Liquidity Condition Index stood at 32.9 in December, falling from 69.1, in November.
The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index showed a slight improvement at 27.1, following last month’s 26.5, as traders remained concerned about the economic outlook.
- The PBOC Policy Bias Index read 37.1, up from last month’s 32.4, with 74.3% of participants viewing the policy stance as unchanged.
- The Guidance Clarity Index hit 50.0, as traders agreed the central bank was transparent
The MNI survey collected the opinions of 35 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 December 5 – December 16.
