Reported 4 months ago
Chinese financial firms are experiencing an abundance of cash as savers are moving their money into higher-yielding wealth and money-market funds offered by non-bank institutions. This trend is providing support for the private sector as these firms are more likely to buy corporate bonds, potentially boosting China's economy. The liquidity surplus is attributed to residents withdrawing savings from banks due to low deposit rates and investing in products offered by asset management firms. Additionally, the ample liquidity in the banking system, combined with fiscal stimulus efforts, is driving this trend of cash-rich non-bank firms buying corporate bonds.
Source: YAHOO