China Ramps Up Liquidity Support as Economic Pressure Builds

The People’s Bank of China injected $14.8 billion into the banking system through its one-year Medium-Term Lending Facility, marking the largest MLF liquidity injection in five months.
Combined with $103.3 billion added earlier this month through reverse-repurchase operations, China’s total liquidity support has reached its highest level since February.
The move follows four consecutive months of declining financial-system liquidity, weaker-than-expected Q2 economic data, and comes ahead of record government bond issuance expected in Q3.
China is opening the liquidity taps again.