CCTV.com - CNTV English - CCTV News


Homepage > News > Biz >

China to inject $158b into money market

11-07-2011 10:21 BJT

China is likely to inject more than 1 trillion yuan ($158 billion) into the money market in the next two months via annual subsidies from the Ministry of Finance, Reuters reported, citing the China Securities Journal.

The injection will help improve liquidity, which has been impacted by the government's tight monetary policy in place since October last year, the newspaper quoted the report by China International Capital Corp (CICC) as saying.

The Finance Ministry typically offers subsidies to various industries and sectors in the last two months of each year as part of distribution of the government's annual tax income.

The ministry does not publicize these subsidies but the market estimated they totaled 1 trillion-2 trillion yuan in 2010.

The People's Bank of China (PBOC) has not raised interest rates or bank reserve requirement ratios (RRR) since July in a sign that the government may be considering loosening its tight monetary stance amid the market turmoil sparked by the euro zone debt crisis.

The central bank previously instituted a slew of rate and RRR hikes as inflation repeatedly hit three-year highs.

Those steps offset the impact of liquidity injections via Finance Ministry subsidies late last year, but the market widely expects the PBOC will leave the subsidies to improve market liquidity this year, traders have said.

Editor:Zhang Jianfeng |Source: China Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program