China’s Central Bank Now Has World’s Largest Balance Sheet

This is a syndicated repost courtesy of Confounded Interest. To view original, click here. Reposted with permission.

China’s central bank, the People’s Bank Of China, now has the world’s largest balance sheet topping even the European Central Bank (ECB). Only The Federal Reserve is shrinking its balance sheet … for now.

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The PBOC has injected almost $1.1 trillion in the market over the past two days.

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One of the impacts of the balance sheet expansion and repo injections is a reduction in the volatiilty of Chinese stocks. Better known as “numbing volatility.”

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On the sovereign side, China’s yield and swaps curves are kinked.

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Central bank interfernce in markets seem to be never ending.

Greet the 1970s with the new victories of revolution and production, 1970. From a private collection.

Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

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