China Financial Daily

Experts say the central bank does not tighten the net liquidity is still running
August 25, the central bank issued in 2009 No. 63 open-market transactions Bulletin: Issue a central vote-year 50 billion yuan; 28-day period for repurchase 10 billion yuan. Thus, in August the first 25 days, the three-month period and one-year central ticket distribution chain are increased in size. Meanwhile, during the period the size of the central bank’s repurchase ring is a more significant increase than 71%.

Although the tickets and are central repo rate has been stabilized, but by the size of the central bank’s intention to fine-tune increasingly evident.

Coincidentally, 25 of the stock market fell sharply again last Shanghai A-share composite index fell 77.63 points, led the market down the same day, while it is bank shares. Of course, the same day decline in banking stocks there are other multiple factors, including management’s tendency to tighten capital requirements, Shanghai Pudong Development Bank [20.69 -0.43%] for nearly 150 billion non-public offering is approved, the management intends to tighten the two sets of mortgage and the U.S. financial system has not fully stabilized and so on.

Suning to respond to the dynamic fine-tuning: the central bank in fact every day in the transfer
7, central bank Deputy Governor Su Ning of the State Council Information Office, introduced in the current macroeconomic situation and so on, and answering a reporter’s question. Photoʷ?reporter

He said that the “dynamic fine-tuning” fine-tuning of monetary policy does not mean, our current inflation problem does not exist

For the central bank’s “market-oriented means of the use of dynamic fine-tuning”, the central bank Deputy Governor Su Ning at the Information Office on the 7th at a news conference to elaborate. Su Ning emphasized that the so-called “dynamic fine-tuning” does not mean that the central bank to fine-tune monetary policy, and he believes that China is not the existence of inflation.

Correct understanding of “fine tuning” within the meaning of

Su Ning said, “Dynamic fine-tuning” is the operation of monetary policy, the focus of monetary policy, efforts to fine-tune the tempo. He also stressed that such fine-tuning, by means of market-oriented, rather than the size of the control method to achieve. He said that this fact has been fine-tuning, rather than fine-tuning until the second half. Month in fact the central bank, Zhou Zhou, every day the situation in the market for fine-tuning.

Reproduce the central bank open market operations to buy back hundreds of billions of dollars are
Since February 17 the central bank in the open market to 120 billion yuan period is 91 days after the buy-back operation, the second this week (August 4) the central bank issued 120 billion yuan to 28 Tianzheng repurchase agreements, this is the first central bank since 2009 Second multi-billion-dollar buy-back operation is over. At the same time the central bank also issued 18 billion yuan 1-year central votes.

Cinda Securities analyst bonds that expire this week, the central bank for 246 billion yuan of funds, 188 billion yuan last surge. Pressure due to return this week, so the central bank increased the repo efforts is to maintain the basic stability of the currency market.

CITIC voted bonds to build red ground field researcher pointed out that the larger the amount of funding due this week, Tuesday has 138 billion yuan from circulation, but there is still the expiration of 108 billion yuan of funds, the central bank is expected this week could be put to the market micro-net.

From the issue of interest rate perspective, the central bank on August 4 issued 1-year bills, the issue price of 98.29 yuan, the reference yield of 1.7397 percent. The yield increase over the previous period of about four basis points, rising for the fifth consecutive week. In addition, at the same time period issue is the 28-day repurchase rate also rose to 1.16 percent, the rate is lower than the previous period also rose by 4 basis points.