Key Points – November Report
Liquidity conditions across China’s interbank markets tightened in November, the latest MNI Liquidity Condition Index shows.
The Liquidity Condition Index stood at 69.1 in November, jumping from 46.9 in September.
The higher the index reading, the tighter liquidity appears to survey participants.
- The Economy Condition Index stood at 26.5, slumping from September’s 53.1 as Covid restriction fears picked up.
- The PBOC Policy Bias Index remained below 50 for a 17 th consecutive month.
- The Guidance Clarity Index picked up somewhat, as respondents still claim to understand the signals from the PBOC.
The MNI survey collected the opinions of 34 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 November 14-25.
