China central bank adviser warns about asset bubbles
Signs grow that Beijing is growing wary of how cheap and plentiful liquidity has stoked excess in markets
26 January 2021 - 17:34
Hong Kong — A chill swept through Chinese financial markets after the central bank withdrew cash from the banking system and an official warned about asset bubbles.
The People’s Bank of China (PBOC) drained about $12bn via open-market operations on Tuesday. The decision was unusual in the weeks before the Lunar New Year holiday, which in 2021 falls in mid-February, because residents typically need more cash to pay for seasonal travel and gifts. It also went against recent reports in Chinese newspapers that liquidity wouldn’t be tightened before the holidays...
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