The People’s Bank of China has refrained from engaging in any open market operations on Tuesday 2 January, marking the 7th consecutive day that it’s held off.
The Chinese central bank said that given overall liquidity levels in the banking system are still reasonable high and can absorb maturing repo agreements, it will not engage in any open market operations on 2 January.
As a consequence a total of 290 billion yuan in liquidity will be withdrawn from the system, resulting from the maturation of a commensurate sum of repo agreements.
Prior to this the central bank oversaw a net withdrawal of 290 billion yuan from the market during the final year of 2017.
A further 510 billion yuan in repo agreements are scheduled to mature in the first week of 2018.