Liquidity is for targeted areas: central bank
The central bank said on Thursday that added liquidity gained from securitized assets will help boost growth in targeted areas.
The areas include credit support to small and medium-sized enterprises, agriculture, urban renovation, and infrastructure projects, according to a statement on the website of People's Bank of China.
On Wednesday, an executive meeting of the State Council, presided over by Premier Li Keqiang, gave the green light for high-quality securitized assets to be traded as a way to boost bank liquidity.
The move will help ease risks for banks and quench liquidity demand.
The products will be traded firstly on the inter-bank bond market in a trial stage, and will be gradually extended to more markets, such as stock exchanges, the spokesperson said.
