Reported about 7 hours ago
China's ongoing efforts to support the yuan by restricting liquidity have created a significant cash squeeze in its financial system, adversely affecting banks and bond funds. The People's Bank of China has drained cash, leading banks to hoard reserves rather than lend, while bond funds are experiencing losses as investors sell off assets for liquidity. The situation poses risks to the economy as the squeeze may limit banks' lending capabilities. Market analysts suggest that relief measures could emerge following an important policy meeting in March.
Source: YAHOO