Despite Massive Liquidity Injection, Chinese Stocks, Commodities Head For Worst Week Of Year

The PBOC stepped up cash injections this week, suggesting authorities are trying to shore up financial markets as a selloff in bonds spreads to equities... but it is not working!

As Bloomberg reports, the central bank has already added a net 510 billion yuan ($77 billion) via open-market operations into the financial system this week, matching the third biggest weekly injection this year.

But, it is not enough...

While bonds did stabilize - managing to avoid closing beyind the crucial 4.00% level...

Stocks did not...

As they head of the worst week in 7 months...

And commodities are getting clobbered...

“The increase in cash additions will help soothe market sentiment,” said Qin Han, chief fixed-income analyst at Guotai Junan Securities Co. “But the decline will not be reversed, as the market’s biggest concern is not tight liquidity but tougher financial regulation.”

Comments

DownWithYogaPants totenkopf88 Fri, 11/17/2017 - 06:59 Permalink

Our lovely private central bankers. Yeah.  Their unimaginative way of approaching problems will really get our creative energies flowing. NOT.Waiting for the big it that you know is going to happen is like soaking an enormous boil.  It's ugly.  It's painful.  It's scary looking and you know it's going to pop any time but you don't know when.  Mankind is being held back by these sociopaths.  I don't see the path forward although I suppose there has to be one since few other than those chemically entertaining themselves with opiates are going to lay down and die.

In reply to by totenkopf88

Let it Go Fri, 11/17/2017 - 06:32 Permalink

The financial missteps in China have continued and it will only be when their economy falters that we will learn to what extent or hear more stories about how they have masked their problems. It is difficult to ignore that China's central bank has warned extreme credit creation and trouble in the shadow banking system could lead to a full-blown financial crisis. In response, they continue pumping out liquidity. If they don't the whole system might seize up and cease to function, on the other hand, such actions only create more problems going forward. The article below looks at how China's policies are affecting global markets. http://China, China, China, It Is All About China html