China: Market policy approach in concerning - Westpac

Analysts at Westpac suggested that the bouts of scarce liquidity in the key interbank market have sparked concern amongst market participants over the stance of policy in China in the past month. 

Key Quotes:

"Chinese authorities have responded, though the trend rise in repo rates implies that they are not being overly free with liquidity. 

It is integral to China’s future that productive investment takes place, at home and abroad. Otherwise, the income and development necessary to drive the consumers’ rise will not be found."