PBOC may up bond trading


People walk past the PBOC building in Beijing. —Bloomberg

CHINA's central bank will likely increase the trading of government bonds as a liquidity management tool, yet such a move should not be misunderstood as quantitative easing, officials and experts said.

It is appropriate for China to maintain the stability of monetary policy given the remaining scope of interest rate cuts, experts said, citing the likelihood for China to slightly cut policy benchmarks of interest rates in the second half of the year.

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