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在线翻译:
szdaily -> Markets
Central bank seeks to calm bond market
    2017-November-2  08:53    Shenzhen Daily

THE central bank tried to calm a nervous bond market Tuesday with more liquidity injections, helping to steady 10-year yields following a selloff, as anxiety deepened about a renewed crackdown on riskier lending even as China’s economy showed signs of slowing.

Trepidation in the debt market had also hurt stocks, with the Shanghai Composite Index edging up only slightly in the session after its worst slide in 11 weeks the day before. “It seems that markets are anxious or are expecting regulators to tighten the screws further in the coming months,” said Louis Kuijs, head of Asia economics at Oxford Economics.

Top policymakers at China’s twice-a-decade Communist Party congress last week said that efforts to contain excessive risk-taking in the financial system would continue next year, with hints of more regulations in areas such as interbank borrowing and wealth management products.

Following the congress, the implications of tighter curbs on debt risks have shaken bond investors, sending yields on 10-year treasury bonds surging to a 3-year high of 3.917 percent at one point Monday amid what traders characterized as panic selling.

By Tuesday afternoon, however, the central bank’s net injection of funds for a fourth straight day had brought a semblance of stability to the market, with the 10-year yield flat at 3.89 percent.

Still, underlying worries about a liquidity crunch and the broader efforts to reduce debt were further amplified by a survey showing a sharper-than-expected slowdown in China’s factory growth in October.

That added to signs of a slowdown in China’s economy, and pressured stocks.

China’s blue-chip CSI300 index finished the day flat, while the Shanghai Composite Index edged up by just 0.1 percent after spending most of the day in negative territory.

The market spasms follow central bank governor Zhou Xiaochuan’s recent warning of the risks of a “Minsky moment” in the economy, referring to a sudden collapse in asset prices after long periods of growth, sparked by debt or currency pressure. (SD-Agencies)

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