AGL 38.30 Increased By ▲ 0.08 (0.21%)
AIRLINK 132.40 Increased By ▲ 3.43 (2.66%)
BOP 8.59 Increased By ▲ 0.74 (9.43%)
CNERGY 4.73 Increased By ▲ 0.07 (1.5%)
DCL 8.47 Increased By ▲ 0.15 (1.8%)
DFML 38.69 Decreased By ▼ -0.25 (-0.64%)
DGKC 84.20 Increased By ▲ 2.26 (2.76%)
FCCL 34.59 Increased By ▲ 1.17 (3.5%)
FFBL 76.49 Increased By ▲ 0.78 (1.03%)
FFL 12.81 Decreased By ▼ -0.01 (-0.08%)
HUBC 110.11 Decreased By ▼ -0.25 (-0.23%)
HUMNL 14.30 Increased By ▲ 0.29 (2.07%)
KEL 5.36 Increased By ▲ 0.21 (4.08%)
KOSM 7.72 Increased By ▲ 0.05 (0.65%)
MLCF 40.68 Increased By ▲ 0.88 (2.21%)
NBP 70.15 Decreased By ▼ -2.17 (-3%)
OGDC 190.60 Increased By ▲ 2.31 (1.23%)
PAEL 26.01 Increased By ▲ 0.38 (1.48%)
PIBTL 7.46 Increased By ▲ 0.09 (1.22%)
PPL 155.99 Increased By ▲ 3.32 (2.17%)
PRL 25.90 Increased By ▲ 0.51 (2.01%)
PTC 19.12 Increased By ▲ 1.42 (8.02%)
SEARL 82.50 Increased By ▲ 0.08 (0.1%)
TELE 7.80 Increased By ▲ 0.21 (2.77%)
TOMCL 32.83 Increased By ▲ 0.26 (0.8%)
TPLP 8.39 Decreased By ▼ -0.03 (-0.36%)
TREET 17.26 Increased By ▲ 0.48 (2.86%)
TRG 56.25 Increased By ▲ 0.21 (0.37%)
UNITY 28.85 Increased By ▲ 0.07 (0.24%)
WTL 1.34 Decreased By ▼ -0.01 (-0.74%)
BR100 10,697 Increased By 38.8 (0.36%)
BR30 31,752 Increased By 420.7 (1.34%)
KSE100 99,560 Increased By 290.9 (0.29%)
KSE30 30,991 Decreased By -41.4 (-0.13%)

China's key money rates spiked for the week as the central bank conducted its biggest drain in nearly two months, tightening liquidity as it extends its campaign against riskier types of financing. While conditions eased slightly on Friday, analysts said tighter cash conditions had forced the non-bank financial institutions to deleverage as those lenders usually use short-term funds to meet their leveraged investment needs.
The volume-weighted average rate of the benchmark 14-day repo traded in the interbank market, considered one of the best indicators of general liquidity in China, surged to its highest in five months on Wednesday. The 14-day repo eased on Friday, trading at 4.1625 percent by 0636 GMT.
The 7-day repo rate also rose for the week and stood at 2.9344 percent on Friday afternoon, more than 6 basis points higher than the previous week's close. In open market operations, the People's Bank of China (PBOC) refrained from injecting net funds into the money market for the entire week, draining a net 330 billion yuan ($49.52 billion) in five days - matching the amount drained in the last week of June.
The PBOC said in a statement that liquidity in the banking system was "appropriate" following factors including liquidity injection from "fiscal expenditure, deposit auctions and refund of financial institutions' reserve payment" to counter maturing reverse repos. A trader at a Chinese bank said cash conditions were "very tight" in the middle of the week but improved on Friday, expecting the situation to remain tight for the remainder of the month. Several traders said the market will focus on open market operations next week as the finance ministry is due to roll over 600 billion yuan worth of special treasury bonds due on August 29, when the PBOC may inject additional funds.

Comments

Comments are closed.