China injects ¥ 92bn into banking system

The People's Bank of China (PBOC), the country's central bank, pumped 92 billion yuan (15.0 billion U.S. dollars) into the banking system through its regular open market operations this week, according to an official report released Thursday. It was the fourth consecutive week that the central bank injected liquidity into the economy, said the report on the bank's website. Analysts interpreted the injection as a sign of the central bank's willingness to boost market liquidity amid a tightening monetary environment caused by a slowdown in foreign capital inflows. Lianxun Securities analyst Yang Weijiao said the liquidity injection scale in June is likely to be higher than that of May. Figures show that the central bank drained 300 billion yuan, 253 billion yuan, 153 billion yuan from the banking system in January, February and March, respectively, and it injected 98 billion yuan and 130 billion yuan into the system in April and May, respectively.