The People’s Bank of China, China’s central bank, said Wednesday it will issue 15 billion yuan (2.2 billion U.S. dollars) of 3-year bank bills Thursday, another sign the government wants to tighten liquidity.. B" E# U% q; ]) Q i
The central bank stopped issuing 3-year bills in June 2008 to reverse the economic slowdown.& A& B0 Q: o: r$ ~: O. n& ^. j' O
"The resumption of the issuance of 3-year bills is the latest signal of liquidity tightening," said Liu Yuhui, an economist with the Chinese Academy of Social Sciences.
* N: {0 a* R V* K, a+ U Experts said the resumption of 3-year bill issuance also relates to the country’s recent strong economic data.
! g8 J/ X) [4 c6 x" [ China’s Purchasing Managers’ Index (PMI) for manufacturing sectors, which is designed to provide a real-time snapshot of business conditions, rose to 55.1 percent in March, the 13th straight month the index has been above 50 percent.. ?! \& {) w; C7 p: `/ J' a2 n! ~
A PMI reading above 50 percent suggests economic expansion, while one below 50 percent indicates contraction.
1 n$ |7 M' I, b3 k1 k7 _ "The resumption in 3-year bill issuance shows the central bank has grown more confident about the economic recovery and is paying more attention to inflation," said He Yifeng, a researcher with the China Institute for Development and Reform at the Central University of Finance and Economics.外语学习网
9 l: f0 t m- g3 N "It will help curb credit excesses and ease the pressures for asset price inflation," He said.
! a# R1 u5 O, a: c He also added the resumption does not rule out the possibility of further rises in deposit reserve ratios, even though the issuance of 3-year bills is an effective tool in curbing liquidity.' _7 P9 I/ x, e
To ease inflationary pressures, the government ordered banks to increase their reserve ratios to 16.5 percent in February, the third such rise since December last year. |