Thursday, August 15, 2013
The Central Bank's Liquidity Adjustment Measures May Negatively Affect Growth
ANBOUND
Currently, the domestic bond investors are concerned about the tight liquidity problem in the Chinese market. In Anbound's view, this is related to the central bank’s measure of "freezing the long-term liquidity while easing the short-term’s". Though the capital amount is balanced in this way, the maturity period of these bonds has been significantly altered. While maintaining steady short-term capital interest rate, the long-term one would be raised.