Key Points – July Report
Liquidity conditions across China’s interbank markets eased in July, the latest MNI Liquidity Condition Index shows, as the half year call on cash eased.
The Liquidity Condition Index stood at 34.4 in July, falling from 57.8 in June, with nearly 40% of traders reporting conditions improved on last month. The higher the index reading, the tighter liquidity appears to survey participants. -
- The Economy Condition Index stood at 73.4, slowing from May’s 79.7, with fears some Covid restrictions may return.
- 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 July 11– July 22.
