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Monday, 24 June 2013

Liquidity squeeze bleeds equities

Central bank says lenders must solve their own credit problems


The central bank hinted on Monday it won’t shore up liquidity to address the credit crunch, a move analysts said reflects top policymakers’ increasing tolerance for slower growth.


The central bank said on Monday in a circular that the liquidity level of the financial system was “reasonable” and urged lenders to strengthen their control of credit expansion.


The announcement took a heavy toll on the stock market.


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WU YIYAO and Xie Yu via CHINA US Focus http://feedproxy.google.com/~r/ChinaUsFocus/~3/RB0L7qFV9lo/

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