PBOC-Backed Paper Warns of ‘Baseless’ Predictions on Liquidity

“Baseless” predictions on liquidity tightening or the policy direction of the People’s Bank of China could mislead investor expectations and artificially create fluctuations, the central bank-backed Financial News said in an editorial.

There shouldn’t be unnecessary worries over liquidity as the monetary policy stance is steady, it said, without identifying entities which are raising such concerns. The central bank isn’t making an “empty promise” when it pledged to keep liquidity reasonably adequate, according to Financial News.

Financial News cited some concerns last month as an example, saying some analysts believed at that time that liquidity may tighten due to some seasonal reasons. The worries didn’t materialize and the liquidity situation remained loose, which proved the market worries were unnecessary, it said.

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