In January, bank loans exceeded market expectations. Loans by Chinese banks rose to CNY 1.3 trillion (USD 216 billion), up by CNY 246.9 billion from a year ago, reaching the highest value in four years.
On February 17th, the benchmark rate for short-term loans among banks, the seven-day repurchase rate, stayed below 4.0 percent, higher than 2.75 percent in June, when the central bank last used repos to curb liquidity, but apparently at a very low level.
On February 18th, the People’s Bank of China conducted for the first time in eight months, a CNY 48 billion (USD 7.9 billion) of 14-day repurchase contracts at 3.8 percent. On June 6th, 2013, the central bank sold CNY 10 billion of 28-day repos.