China Is Pumping Cash to Fill a $456 Billion Liquidity Shortfall

The central bank injected a total of 600 billion yuan ($86.4 billion) via a 14-day repurchase agreements late last week, ending a two-month hiatus for such operations. Industrial Securities forecasts the PBOC to add as much as 3.5 trillion yuan of funds via similar tools before the holidays kick off on Sunday. The injections would address a roughly 3.2 trillion yuan liquidity gap identified by Bloomberg calculations.