- The PBOC overnight pumped ¥170B ($24.7B) into the financial system via its daily money-market operation, the largest amount in four months.
- The move comes as officials worry they may have leaned too far in the direction of trying to tamp down debt-fueled speculation - the result being more than a 5% decline in the stock market over the last month, and bond yields rising to more than a two-year high.
- The result at least for a night was satisfying: The Shanghai Composite closed higher by 0.7% after earlier being down nearly 1%. The 10-year bond yield slipped two basis points to 3.62%.
- WSJ's Heard on the Street column isn't too worried, noting the recent rise in bond yields hasn't been accompanied by widening spreads between government and lower-rated debt. Keep an eye on capital outflows - they've slowed for now - but another rate hike by the Fed could tip the balance and send money rushing out again.
- ETFs: FXI, ASHR, YINN, CAF, FXP, YANG, PGJ, GXC, MCHI, PEK, CHN, TDF, XPP, YXI, CHAU, YAO, CN, FCA, GCH, CHAD, CXSE, KBA, JFC, AFTY, HAHA, ASHX, CNHX, XINA, CNYA
- Now read: Trying To Reconcile Accounts; China
Original article