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China pumps in $14-billion cash as Evergrande's pain roils markets

Extended and severe economic slowdown seems probable, say economists

Security personnel form a human chain as they guard outside the Evergrande's headquarters, where people gathered to demand repayment of loans and financial products. (Photo: Reuters)
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Security personnel form a human chain as they guard outside the Evergrande's headquarters, where people gathered to demand repayment of loans and financial products. (Photo: Reuters)

Tian Chen & Tania Chen | Bloomberg
China injected more cash into its banking system in a sign authorities are seeking to avert a funding squeeze amid a seasonal rise in financing demand and the intensifying debt crisis at China Evergrande.
 
The People’s Bank of China added 90 billion yuan ($14 billion) of funds on a net basis through seven-day and 14-day reverse repurchase agreements on Friday, the most since February. Today was the first time this month it added more than 10 billion yuan short-term liquidity into the banking system on a single day. 

The move comes as the trouble facing China Evergrande Group fuels investor concern

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First Published: Sep 17 2021 | 11:02 PM IST

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