In the latest in a series of interventions aimed at sparking the domestic economy,The People's Bank of China this week injected 265 billion yuan ($42 billion) into the nation's banking system. This took the form of reverse repurchase agreements (also known as reverse repos, or RPs), a common type of short-term financing vehicle for banks.
All told, the central bank has delivered over 2.4 trillion yuan ($379 billion) in assistance facilities since June.
IMF estimates for 2012 growth in China were cut recently, to 7.8%. Meanwhile, the economy is showing pronounced signs of softness in key areas such as construction, industrial production, and factory output.
The article Central Bank Pumps $42 Billion Into Chinese Economy originally appeared on Fool.com.
Eric Volkman has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.