PBOC draining liquidity via net open market operations – Rabobank

Analysts at Rabobank note that Beijing continues to try to de-lever and yet still injecting a vast amounts of liquidity into its debt-addicted economy.

Key Quotes

“Despite the PBOC draining liquidity via net open market operations for a string of days in a row, we are nonetheless seeing the equity market soar (the Shanghai index is up 3% YTD and it’s only 9 January) and SHIBOR rates come down sharply - 3-month SHIBOR is down from 4.91% to 4.66%.”