China Injects Record Funds

Central bank adds $46 bln to financial system to ease cash crunch.

China’s central bank added a record 290 billion yuan ($46 billion) to the financial system using reverse-repurchase agreements, seeking to address a cash squeeze in the run-up to a weeklong holiday.

The People’s Bank of China conducted 190 billion yuan of 28-day reverse repos and offered 100 billion yuan of 14-day contracts, according to a trader at a primary dealer required to bid at the auctions. Today’s total is the highest for a single day in Bloomberg data going back to 2004.

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