Market fund tension to continue
ANBOUND
In recent days, tensions continued to be felt in the Chinese market funds; some small and medium financial institutions are even begging for funds. The market is quite concerned if the tension in the funding will be improved in the future. In this regard, Anbound research team believes that, because of the policies of de-leveraging, curbing property market bubble, slowing down capital outflows and the devaluation of renminbi, although there is the continuous tightening of domestic funds. Anbound expects that in the future there will be a period of time where the Central Bank will continue the "neutral tightening" monetary policy, increasing market interest rates to tighten liquidity through open market operations to effectively control the credit growth. The market fund is expected to continuously face tension for a period of time.