China’s central bank injected record liquidity into the banking system via medium-term lending facility to alleviate funding pressure.
The People’s Bank of China on Monday offered CNY 502 billion of MLF with one-year maturity. This was the biggest injection via MLF since it was introduced in 2014.
The MLF helps commercial banks to borrow from the central bank using securities as collateral.
Last month, the PBoC had reduced the ratio of cash that banks should retain as reserves by 50 basis points, so that to free up funds available for lending.