PBOC said to have no intention of actively draining cash from the banking system

This relates to the decision by the PBOC to leave a key policy rate unchanged earlier here. Alongside that, the Chinese central bank withdrew cash from its medium-term policy loan operation for the first time 16 months. That prompted some concerns about a possible signal that policymakers are looking to reduce liquidity as the government seeks to put a stop to ‘idle funds’.

But the sources in the report are saying that “the central bank has no intention of actively draining cash”. Adding that “current market funding conditions have been generally loose” and that “monetary policy remained supportive of the real economy”.

This article was written by Justin Low at www.forexlive.com.