Analysts at TD Securities note that the PBoC added liquidity to the banking system offering CNY 200bn in 1y MLF loans while leaving the interest rate on MLFs unchanged at 3.25%.

• “With the latest MLF the PBoC has injected a net CNY 47bn into the market this month. The easier liquidity follows softer data releases over recent weeks and we expect it to be followed by a slightly lower 1y (loan prime rate) LPR next week.”