Central bank digs deeper to grapple with investor gloom

Fresh worries: Police vehicles outside the headquarters of Zhongzhi Enterprise Group Co in Beijing. China’s banking regulator sets up a taskforce to examine risks at Zhongzhi after its unit Zhongrong International Trust missed payments on investment products. — Bloomberg

Beijing: The People’s Bank of China (PBoC) moved to improve fragile market sentiment yesterday with a step up in its recent support for the yuan and an injection of cash into the financial system.

The central bank injected the largest amount of short-term cash since February one day after it slashed interest rates on a slew of monetary tools. Minutes before the liquidity addition, the PBoC also offered the most forceful guidance to yuan traders since October via its daily reference rate for the managed currency.