PBoC denies that new liquidity tool is a ‘form of QE’

The People's Bank of China

The People’s Bank of China has created a new tool, the central bank bills swap (CBS), to beef up liquidity of the perpetual bonds issued by Chinese state banks. Some analysts said the measure amounted to quantitative easing (QE), which the central bank denied.

The measure could inject more liquidity into the banking system, economists said, though the PBoC claimed the impact would be “neutral”.

Some said it amounted to a form of QE. “This is of course a form of QE, even if the PBoC does not

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