China's commercial banks have begun bidding in a Ministry of Finance deposit auction. It's to create greater liquidity in the market. The country's central bank is on the same track, saying it will maintain relatively loose monetary policy.
A cash injection of 30 billion yuan.
China's Ministry of Finance launched a seventh deposit auction on Thursday. And the commercial banks are all vying for it bidding with attractive interest rates.
But analysts say there isn't a cash shortage. Any tightening in supplies is due to high loan demand.
China's central bank has sped up its capital injection process recently.
Lian Ping, Chief Economist of Bank of Communications said "The central bank injected more than 900 billion yuan during the past 7 weeks. That will influence the money liquidity later."
China's central bank says it will keep a relatively loose monetary policy, for the second half of this year.